A person who incurs qualifying expenditure on a share in plant
or machinery can claim PMAs just as a person who incurs expenditure
on a part of plant or machinery can. The share is treated as a
separate asset that is used for the qualifying activity for as long
as the plant or machinery is used for the qualifying activity. Once
the plant or machinery is no longer used for the qualifying
activity treat the share as no longer used for the qualifying
activity. This means that a disposal value is brought to account if
the asset begins to be used for some other purpose
CA23240.
Example Madge is a farmer. She buys a share in a
combine harvester. Neil, a neighbouring farmer, has the other share
in it. She uses the combine harvester on her farm. After 2 years
she stops using the combine harvester on her farm. She is treated
as ceasing to use the share in the combine harvester for the
purposes of her farm then.
