Capital Allowances Act 2001 section 98

Expenditure to which the monetary limits apply

Section 98 identifies whose expenditure qualifies for the de minimis monetary limit that determines whether spending on long-life assets is treated as long-life asset expenditure attracting a lower rate of writing-down allowance.

• The monetary limit is available to sole traders who devote substantially all their time to a qualifying activity, provided the expenditure is not excluded
• Partnerships qualify where all partners are individuals and at least half of them devote the whole or a substantial part of their time to the qualifying activity
• Companies subject to corporation tax qualify for the monetary limit on all expenditure that is not excluded
• Excluded expenditure covers shares in plant or machinery, deemed expenditure under contribution allowance rules, and plant or machinery provided for leasing