See the guidance at INTM209140. The same market value rule for plant and machinery applies for periods prior to the introduction of self-assessment for companies
Sometimes the market value rule for plant and machinery works in
a particular way. The result is that relief against chargeable
profits could be given more than once for the same expenditure.
The purpose of ICTA88/SCH24/PARA11 is to stop the possibility
of such double relief. The Board can use it to make a declaration
for an accounting period that is a period earlier than the
'starting period' - the first period for which the Board in fact
gives a direction. The Board may make such a declaration if it
considers that it gave no direction for the earlier period for the
following reason – because it is assumed that capital
allowances on plant and machinery or industrial buildings were
allowed. The result of this assumption is that a company
The Board however cannot make such a declaration if, for example, the company would have passed the motive test, the acceptable distribution test, the exempt activities test or the public quotation test.
