Capital Allowances Act 2001 section 99

The monetary limit

Section 99 sets the de minimis monetary limit that determines whether expenditure on long-life assets qualifies for different capital allowance treatment, and explains how that limit is adjusted for shorter or longer periods and for companies with associated companies.

• The standard monetary limit is £100,000 for a 12-month chargeable period
• For individuals and partnerships, the limit is proportionally increased or reduced if the chargeable period is longer or shorter than 12 months; for companies, it is only proportionally reduced for periods shorter than 12 months
• Where a company has associated companies, the limit is divided equally among them using the formula L ÷ (N + 1), where L is the applicable limit and N is the number of associated companies
• The rules for determining whether companies are associated are those set out in Part 3A of the Corporation Tax Act 2010