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HMRC internal manual

Capital Allowances Manual

PMA: Assets used partly for qualifying activity: Plant or machinery used for business entertainment


Capital allowances are not given on plant and machinery used for business entertainment (see BIM45000 onwards) or for providing anything incidental to the entertainment.

Hospitality of any kind counts as business entertainment.

Plant and machinery provided by a business for its employees, including directors and people engaged in the management of a company, does not count as provided for business entertainment unless its provision for them is incidental to its provision for others.

The provision of plant or machinery by a person is not treated as business entertainment if:

  • that person’s qualifying activity includes the provision of that asset, and
  • it is sold in the course of the qualifying activity or provided free in the course of advertising that qualifying activity to the public.