Part 2

Plant and machinery allowances
Chapter 10

Long-life assets

Long-life asset expenditure

Meaning of “long-life asset”
91
1
For the purposes of this Chapter “long-life asset” means plant or machinery which—
a
if new, can reasonably be expected to have a useful economic life of at least 25 years, and
b
if not new, could reasonably have been expected when new to have a useful economic life of at least 25 years.
2
“New” means unused and not second-hand.
3
The useful economic life of plant or machinery is the period—
a
beginning when it is first brought into use by any person for any purpose, and
b
ending when it is no longer used or likely to be used by anyone for any purpose as a fixed asset of a business.