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HMRC internal manual

Capital Allowances Manual

HM Revenue & Customs
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PMA: Miscellaneous: Renewals

Expenditure does not qualify for PMAs unless it is capital expenditure. Expenditure that is allowed to be deducted in computing trading profits is not capital expenditure CA11530.

Do not give capital allowances if expenditure has qualified for a renewals deduction. If a revenue deduction has been given for the cost of renewing plant or machinery (see BIM46903), then that expenditure has been deducted in computing trading profits and so it is not capital expenditure.

If plant or machinery is dealt with on the renewals basis, do not give capital allowanceson expenditure incurred on additions and improvements.