Part 2

Plant and machinery allowances
Chapter 8

Cars, etc.

Cars above the cost threshold

Limit where part of expenditure met by another person
76
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 - X)/E
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 × C/E
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.