CA23020 - Plant & Machinery Allowances (PMA): Qualifying expenditure: Expenditure incurred before qualifying activity begins

CAA01/S12

Treat expenditure incurred before a qualifying activity begins as incurred on the first day that the person who incurred the expenditure carries on the qualifying activity.

Example Jubane and Gostelow decide to go into business as undertakers. They buy a hearse on 1 October 2002 and start the business on 1 January 2003. Treat them as incurring the expenditure on the hearse on 1 January 2003.