Commentary

B3.312 Assets qualifying for the 'renewals' basis and 'valuation' basis for plant and machinery

Business tax
Business tax | Commentary

B3.312 Assets qualifying for the 'renewals' basis and 'valuation' basis for plant and machinery

Business tax | Commentary

B3.312 Assets qualifying for the 'renewals' basis and 'valuation' basis for plant and machinery

For periods before 1 April 2016 for corporation tax and 6 April 2016 for income tax the cost of replacing implements, utensils and articles employed for the purposes of a trade could be deducted in computing the profits of that trade (provided it was not calculated on the cash basis for small businesses1, see B2.112)2; this included items such as loose tools. Expenditure on such items would not therefore be of a capital nature and would not also qualify for capital allowances. HMRC states that items

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