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HMRC internal manual

Capital Allowances Manual

From
HM Revenue & Customs
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PMA: Miscellaneous: Shares in plant or machinery

CAA01/S270

A person who incurs qualifying expenditure on a share in plant or machinery can claim PMAs just as a person who incurs expenditure on a part of plant or machinery can. The share is treated as a separate asset that is used for the qualifying activity for as long as the plant or machinery is used for the qualifying activity. Once the plant or machinery is no longer used for the qualifying activity treat the share as no longer used for the qualifying activity. This means that a disposal value is brought to account if the asset begins to be used for some other purpose CA23240.

Example Madge is a farmer. She buys a share in a combine harvester. Neil, a neighbouring farmer, has the other share in it. She uses the combine harvester on her farm. After 2 years she stops using the combine harvester on her farm. She is treated as ceasing to use the share in the combine harvester for the purposes of her farm then.