Part 2Plant and machinery allowances

Chapter 8Cars, etc.

Cars above the cost threshold

76Limit where part of expenditure met by another person

(1)

Subsection (2) applies if, as a result of section 532 (general rule excluding contributions), only part of the capital expenditure incurred on the provision of a car to which section 74 applies is treated as incurred by a person.

(2)

The amount of the writing-down allowance to be made to that person for a chargeable period in respect of the qualifying expenditure on the car must not exceed—

£3,000×E-XEmath

where—

E is the amount of capital expenditure incurred on the provision of the car, and

X is the amount of the expenditure excluded by section 532.

(3)

Subsection (4) applies if—

(a)

capital expenditure exceeding £12,000 is incurred on the provision of a car to which section 74 applies, and

(b)

a person (“the contributor”) is entitled to writing-down allowances as a result of section 538 (contribution allowances for plant and machinery).

(4)

The amount of the writing-down allowance to be made to the contributor for a chargeable period in respect of his contribution to the expenditure on the car must not exceed—

£3,000×CEmath

where—

E is the amount of capital expenditure incurred on the provision of the car, and

C is the amount of the contribution.

(5)

The limit under subsection (2) or (4) is proportionately increased or reduced if the chargeable period is more or less than a year.