Income Tax (Trading and Other Income) Act 2005 section 826

Excluded capital expenditure

Section 826 prevents individuals who benefit from qualifying care relief from also claiming capital allowances on plant or machinery used in providing that care.

• Capital expenditure on plant or machinery used for qualifying care is termed "excluded capital expenditure" and cannot attract capital allowances under the Capital Allowances Act 2001.
• The restriction applies where the expenditure is incurred by a relevant individual during a relevant chargeable period in which qualifying care relief is in effect.
• It covers plant or machinery provided wholly or partly for the purpose of delivering qualifying care by that individual.
• The rule ensures there is no double tax benefit from both the simplified qualifying care relief and separate capital allowances on the same care-related assets.