Part 2Plant and machinery allowances

Chapter 9Short-life assets

84Cases in which short-life asset treatment is ruled out

Treatment of plant or machinery as a short-life asset is ruled out in any of the cases listed in column 1 of the Table, unless an exception listed in column 2 applies.

TableShort-life asset treatment

1. Short-life asset treatment ruled out

2. Exception (if any)

1. The expenditure is treated as incurred for the purposes of a qualifying activity under—

  1. (a)

    section 13 (use for qualifying activity of plant or machinery provided for other purposes), or

  2. (b)

    section 14 (use for qualifying activity of plant or machinery which is a gift).

2. The plant or machinery is the subject of special leasing (as defined by section 19).

3. The plant or machinery is a car (as defined by section 81).

The car is within section 82(4) (cars hired out to persons receiving disability allowances etc.).

4. The expenditure is long-life asset expenditure (see Chapter 10).

5. The plant or machinery is provided for leasing.

The plant or machinery is a car which is within section 82(4) (cars hired out to persons receiving disability allowances etc.).

The plant or machinery will be used within the designated period (as defined by section 106) for a qualifying purpose (as defined by sections 122 to 125).

6. Section 109 provides only a 10% writing-down allowance in respect of expenditure on the plant or machinery.

7. The plant or machinery is leased to two or more persons jointly in circumstances such that section 116 applies.

8. The plant or machinery is a ship.

9. The expenditure was incurred partly for the purposes of a qualifying activity and partly for other purposes (see Chapter 15).

10. The expenditure is required to be allocated to a single asset pool under section 211 (partial depreciation subsidy).