Part 2 Plant and machinery allowances

Chapter 8 Cars, etc.

Cars above the cost threshold

76 Limit 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—

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—

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.