Revenue Precedents

Capital allowances for Industrial Buildings and Plant and Machinery are computed on a net of grant basis. In the event of a grant being repaid, may the grant be treated as expenditure incurred and qualifying for capital allowances? The grant repaid may be treated as expenditure incurred for the purposes of claiming capital allowances on industrial buildings, machinery and plant. The date on which the expenditure is incurred may be taken as the date when the grants are repaid. IT973003

Where a company is engaged in a food processing trade, as defined, and receives grants in respect of machinery and plant which it uses in that trade, the grants may only be excluded in respect of machinery and plant which is used solely in the course of manufacturing processed food and which is not used in any other process. IT943040