EIM36500 - Deductions from earnings: capital allowances: introduction: arrangement of guidance: contents
Section 36 CAA 2001
Introduction
Employees and office holders can, in certain circumstances, claim deductions for plant and machinery under the general rule for employees’ expenses in Section 336 ITEPA 2003 if they incur insubstantial expenditure on items such as tools and office equipment described at EIM36510.
For more substantial expenditure on plant or machinery, capital allowances my be available instead. The capital allowance legislation in Part 2, CAA01 applies in the same way to offices and employments as it does to trades (see CA20006). However, in addition to the ordinary rules, an employee or office holder can only claim allowances if the asset is 'necessarily provided' for use in the performance of the duties or office. Furthermore, an employee or office holder cannot claim capital allowances for a cycle or motor vehicle.
The detailed guidance on capital allowances for employees and office holders is arranged as shown in the following tables.
Expenditure qualifying for capital allowances
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EIM36510Expenditure on small items of plant and machinery
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EIM36520Conditions to be satisfied if capital allowances are to be given
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EIM36530Meaning of 'plant or machinery'
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EIM36540Meaning of 'necessarily provided for use in the performance of the duties'
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EIM36550In the performance of the duties: the need to establish what the duties require
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EIM36560The need to establish whether the employer would provide the plant or machinery
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EIM36570Apportionment of allowances where there is both business and private use
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EIM36580Use of plant or machinery for business entertaining