SE36540 - Deductions from emoluments: capital allowances - meaning of "necessarily provided for use in the performance of the duties"

Section 36(1)(b) CAA 2001 (previously, Section 27(2)(a) CAA 1990)

The phrase 'necessarily provided for use in the performance of the duties' in the capital allowance legislation imposes the same objective test as that in the Schedule E expenses rule in Section 198(1) ICTA 1988 (see SE31640 and SE31645).

Capital allowances are not due for expenditure on items which employees provide simply for their own convenience or for other reasons personal to themselves, even if they do in fact use the items in carrying out their work.

To qualify for capital allowances, the duties of an employee must objectively require the use of the machinery or plant.  In a disputed case, it is important to establish

• what the employees’ duties require (see SE36550) and
• whether it was necessary for the employees to provide the items themselves. It will not have been necessarily provided by the employee if the employer is willing to provide or pay for it (see SE36560).

Note that the machinery or plant does not have to be 'wholly and exclusively' used for the performance of the duties. If there is private use the allowances can be apportioned (see SE36570).

Note also that the 'necessarily' test was removed

• for any mechanically propelled road vehicle with effect from 6 April 1990 (see SE36750) and
• for cycles with effect from 6 April1999.

The term 'mechanically propelled road vehicle' is not defined in the Act. It should be taken to include a car, a motor cycle or a van. Remember though that employees cannot claim capital allowances for cars, vans, motor cycles or bicycles after 5 April 2002 (see SE36520).