The capital allowances legislation provides for apportionment of
allowances where machinery or plant is used partly in performance
of the duties and partly for other purposes.
Apportionment of capital allowances has to be made on a 'just
and reasonable' basis having regard to all the circumstances,
principally the actual use made of the item in the year of
assessment.
For an illustration of how the apportionment is made, see
example EIM36920 and example
EIM36925.
As regards the use of assets for business entertaining, see
EIM36580.
