380T Allowance for machinery or plant.

Summary

Increased rates of wear and tear allowances are available in respect of capital expenditure incurred on plant or machinery (other than road vehicles) where such expenditure is incurred as part of the expenditure incurred on the provision of a new installation. The mechanism for granting the increased allowances is for the wear and tear allowances to be made under section 284 to be increased to 100%. Furthermore, an additional allowance of 50% of the qualifying expenditure relating to the machinery or plant is also available.

Details

Accelerated wear and tear allowances – new machinery or plant

(1) & (2) Where expenditure incurred on the new installation includes expenditure on new machinery or plant then increased rates of wear and tear allowances will apply to the expenditure on such plant & machinery used in the relevant trade. The wear and tear allowances to be made under section 284 are increased to 100% plus an additional allowance of 50% of the qualifying expenditure on plant and machinery is also allowed. In ascertaining the amount of expenditure qualifying for wear and tear allowances under section 284 no account it to be taken of the additional 50% allowance.

Relevant Date: Finance Act 2021