Part 2Plant and machinery allowances
Chapter 20Supplementary provisions
Partnerships and successions
264Partnership using property of a partner
1
Subsection (2) applies if—
a
a qualifying activity is carried on in partnership,
b
plant or machinery is used for the purposes of the qualifying activity, and
c
the plant or machinery is owned by one or more of the partners but is not partnership property.
2
The same allowances, deductions and charges are to be made under this Part in respect of the plant or machinery as would fall to be made if—
a
the plant or machinery had at all material times been owned by all the partners and been partnership property, and
b
everything done by or to any of the partners in relation to that plant or machinery had been done by or to all the partners.
3
The disposal value of plant or machinery is not required to be brought into account if—
a
the plant or machinery is used for the purposes of a qualifying activity carried on in partnership,
b
a sale or gift of the plant or machinery is made by one or more of the partners to one or more of the partners, and
c
the plant or machinery continues to be used after the sale or gift for the purposes of the qualifying activity.
4
The references in this section to use for the purposes of a qualifying activity do not include use—
a
as a result of a letting by the partner or partners in question to the partnership, or
b
in consideration of the making to the partner or partners in question of any payment which may be deducted in calculating the profits of the qualifying activity.