Commentary

B3.330 Plant and machinery first-year allowances

Business tax
Business tax | Commentary

B3.330 Plant and machinery first-year allowances

Business tax | Commentary

B3.330 Plant and machinery first-year allowances

A first-year allowance (FYA) is given by reference to the chargeable period1 in which capital expenditure on the provision of plant or machinery for the purposes of the qualifying activity is incurred, whether or not the asset is brought into use for the purposes of the trade in that period. The allowance is only made to the person concerned if the plant or machinery is owned by him at some time during the chargeable period2.

The amount of the FYA is a percentage of the first-year qualifying expenditure, as shown in the following table.

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