Commentary

B3.304 Qualifying activities for plant and machinery allowances

Business tax
Business tax | Commentary

B3.304 Qualifying activities for plant and machinery allowances

Business tax | Commentary

B3.304 Qualifying activities for plant and machinery allowances

Each of the following is a qualifying activity for the purposes of plant and machinery allowances1:

  1.  

    (a)     a trade2

  2.  

    (b)     an 'ordinary UK property business' (see below)3

  3.  

    (c)     a 'UK furnished holiday lettings business' (see below)4

  4.  

    (d)     an 'ordinary overseas property business' (see below)5

  5.  

    (e)     an 'EEA furnished holiday lettings business' (see below)6

  6.  

    (f)     a profession or vocation7

  7.  

    (g)     a concern listed in ITTOIA 2005, s 12(4) or CTA 2009, s 39(4) (mines, gasworks, docks, markets, transport undertakings etc; see B5.651)8

  8.  

    (h)     managing the investments of a company with investment business9

  9.  

    (i)     'special leasing' of plant or machinery (see below)10

  10.  

    (j)     an employment or office (see below)11;

but to the extent only that the profits or gains from the activity are, or (if there were any) would be, chargeable to tax12.

As far as (b), (d) and (i) are concerned, plant or machinery for use in a dwelling house is not qualifying expenditure in certain cases (see B3.311)13. As for (j), this category needs to be read with the rules imposing restrictions on qualifying expenditure in the case of an employment or office (see B3.311)14.

'Ordinary UK property business'

'Ordinary UK property business' means a

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