Part 2

Plant and machinery allowances
Chapter 20

Supplementary provisions

Miscellaneous

Use of plant or machinery for business entertainment
269
1
If—
a
a person carrying on a qualifying activity, or
b
an employee of that person,
provides business entertainment in connection with that activity, the use of plant or machinery for providing the entertainment is to be treated as use for purposes other than those of that activity.
2
For the purposes of this section—
a
“entertainment” includes hospitality of any kind, and
b
the use of an asset for providing entertainment includes the use of an asset for providing anything incidental to the entertainment.
3
“Business entertainment” does not include anything provided by a person for employees unless its provision for them is incidental to its provision for others.
4
“Business entertainment” does not include the use of plant or machinery for the provision of anything by a person if—
a
it is a function of that person’s qualifying activity to provide it, and
b
it is provided by that person in the ordinary course of that qualifying activity—
i
for payment, or
ii
free of charge with the object of advertising to the public generally.
5
For the purposes of this section—
a
directors of a company, or
b
persons engaged in the management of a company,
are to be regarded as employed by the company.
Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)