B3.302 Plant and machinery allowances—overview

Business tax
Business tax | Commentary

B3.302 Plant and machinery allowances—overview

Business tax | Commentary

Division B3.3     Plant and machinery

For updates affecting this Division please see Part B0 Updates

Plant and machinery—introduction

B3.302 Plant and machinery allowances—overview

A person who carries on a trade or other 'qualifying activity' and incurs 'qualifying expenditure' can claim capital allowances under the plant and machinery code.

For the meaning of 'qualifying activity', which includes, in addition to trades, various other types of business, including property businesses, see B3.304.

The meaning of qualifying expenditure is discussed in detail at B3.305. The general rule is that expenditure is 'qualifying expenditure' if it is capital expenditure on the provision of plant or machinery wholly or partly for the purposes of the qualifying activity carried on by the person incurring the expenditure. The person incurring the expenditure must generally own the plant or machinery as a result of incurring it.

Neither plant nor machinery are defined in the legislation and so take their ordinary meaning. What constitutes machinery is usually straightforward but plant is much more difficult to define and as a result there have been a number of tax cases in which the meaning has been considered. See B3.306.

For the way in which allowances are given and charges are made, see B3.106 (capital allowances generally) and B3.380 (plant and machinery allowances).


The super-deduction is a temporarily relief for companies on qualifying expenditure on plant or machinery from 1 April 2021 to 31 March 2023. The super-deduction of 130% allowance is available on new plant or machinery that is not special rate expenditure, ie it would

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