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HMRC internal manual

Business Income Manual

Specific deductions: repairs and renewals: change from plant & machinery allowances to statutory renewals allowance

S68 Income Tax (Trading and Other Income) Act 2005, S68 Corporation Tax Act 2009.

The deduction for expenses incurred on the replacement or alteration of tools (see BIM46960) applies even if plant and machinery capital allowances were claimed on the expenditure on the asset which is being replaced. The taxpayer can, alternatively, claim plant and machinery allowances on the new asset.