EIM36500 - Deductions from earnings: capital allowances: introduction: arrangement of guidance

Section 36 CAA 2001

Introduction

The general rule for employees’ expenses in Section 336 ITEPA 2003 (see generally EIM31620 onwards) does not specifically prevent a deduction for expenditure on plant and machinery used in performing the duties of an office or employment. But substantial expenditure of this kind will not usually qualify for a deduction under Section 336 because it puts an employee in a position to perform the duties rather than being incurred in their actual performance.

Normally therefore allowances for capital expenditure on machinery and plant should be given (and balancing charges should be made where necessary) under the capital allowances rules in Part 2 of the Capital Allowances Act 2001. Those rules are applied to employees and office holders by Section 15 CAA 2001. For 2000/01 and earlier years, the corresponding provisions are in Part II Chapter I of the Capital Allowances Act 1990.

Do not give deductions for expenditure on acquiring plant and machinery under the general rule for employees’ expenses in Section 336 ITEPA 2003 except in the circumstances described at EIM36510.

The detailed guidance on capital allowances for employees and office holders is arranged as shown in the following tables.

Expenditure qualifying for capital allowances

Calculation of the allowances due

Particular items of machinery or plant.

Note that, except where this is made clear in the text, the guidance in these pages supplements but does not replace the general guidance in the pages listed above

Particular types of employment

Note that, except where this is made clear in the text, the guidance in these pages supplements but does not replace the general guidance in the pages listed above

Procedures

Examples