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HMRC internal manual

Capital Allowances Manual

MEA: Allowances and charges: Balancing allowances: apportionment of expenditure

For the purposes of the MEA code the amount of expenditure on an asset sold with other assets should be ascertained by a just apportionment of the consideration.

CAA01/S407 and CAA01/S411 deal with the apportionment of consideration between expenditure qualifying at the 10% and 25% writing down allowance rates.

Bear in mind that whilst the MEA code restricts qualifying expenditure by reference to the vendor’s original expenditure, there are no equivalent general provisions applying to plant and machinery capital allowances.