Capital Allowances Act 2001

Long-life asset expenditure E+W+S+N.I.

90 Long-life asset expenditure E+W+S+N.I.

“Long-life asset expenditure” means qualifying expenditure—

(a) incurred on the provision of a long-life asset for the purposes of a qualifying activity, and

(b) not excluded from being long-life asset expenditure by any of sections 93 to 100.

91 Meaning of “long-life asset” E+W+S+N.I.

(1) For the purposes of this Chapter “long-life asset” means plant or machinery which—

(a) if new, can reasonably be expected to have a useful economic life of at least 25 years, and

(b) if not new, could reasonably have been expected when new to have a useful economic life of at least 25 years.

(2) “New” means unused and not second-hand.

(3) The useful economic life of plant or machinery is the period—

(a) beginning when it is first brought into use by any person for any purpose, and

(b) ending when it is no longer used or likely to be used by anyone for any purpose as a fixed asset of a business.

92 Application of Chapter to part of expenditure E+W+S+N.I.

(1) If, under any of the following provisions of this Chapter, this Chapter applies to part only of the capital expenditure on plant and machinery—

(a) the part to which this Chapter applies, and

(b) the part to which it does not,

are to be treated for the purposes of this Act as expenditure on separate items of plant or machinery.

(2) For the purposes of subsection (1), all such apportionments are to be made as are just and reasonable.