EIM36500 - Deductions from earnings: capital allowances: introduction: arrangement of guidance: contents

Section 36 CAA 2001

Introduction

The general rule for employees’ expenses in Section 336 ITEPA 2003 (see generally EIM31620 onwards) does not specifically prevent a deduction for expenditure on plant and machinery used in performing the duties of an office or employment. But substantial expenditure of this kind will not usually qualify for a deduction under Section 336 because it puts an employee in a position to perform the duties rather than being incurred in their actual performance.

Normally therefore allowances for capital expenditure on machinery and plant should be given (and balancing charges should be made where necessary) under the capital allowances rules in Part 2 of the Capital Allowances Act 2001. Those rules are applied to employees and office holders by Section 15 CAA 2001. For 2000/01 and earlier years, the corresponding provisions are in Part II Chapter I of the Capital Allowances Act 1990.

Do not give deductions for expenditure on acquiring plant and machinery under the general rule for employees’ expenses in Section 336 ITEPA 2003 except in the circumstances described at EIM36510.

The detailed guidance on capital allowances for employees and office holders is arranged as shown in the following tables.

1. EIM36510

   Expenditure on small items of plant and machinery
2. EIM36520

   Conditions to be satisfied if capital allowances are to be given
3. EIM36530

   Meaning of 'machinery or plant'
4. EIM36540

   Meaning of 'necessarily provided for use in the performance of the duties'
5. EIM36550

   In the performance of the duties: the need to establish what the duties require
6. EIM36560

   Necessarily provided: the need to establish whether the employer would provide the machinery or plant
7. EIM36570

   Apportionment of allowances where there is both business and private use
8. EIM36580

   Use of machinery or plant for business entertaining
9. EIM36600

   Cases to be seen by an Inspector
10. EIM36605

    Annual Investment Allowance: general
11. EIM36610

    First year allowances: general
12. EIM36620

    First year allowances: exceptions
13. EIM36630

    Rates of first year allowance
14. EIM36640

    Withdrawal of 100% first year allowance in respect of machinery and plant acquired for use primarily in Northern Ireland
15. EIM36650

    Writing down allowances: general
16. EIM36660

    Writing down allowances: the amount on which the allowance is calculated
17. EIM36670

    Balancing allowances and charges: when they arise
18. EIM36680

    Balancing allowances and charges: how they are calculated
19. EIM36690

    Balancing allowances and charges: the value to take
20. EIM36695

    Small Pools Allowance
21. EIM36700

    Bicycles
22. EIM36710

    Books
23. EIM36720

    Briefcases
24. EIM36730

    Computers and word processors
25. EIM36731

    100% first year allowance for computers and hi-tech communications equipment bought between 1 April 2000 and 31 March 2004
26. EIM36810

    Mobile telephones, car telephones and in-car entertainment
27. EIM36750

    Motor vehicles: general
28. EIM36800

    Pocket calculators
29. EIM50700

    Car mechanics
30. EIM60055

    Clergymen
31. EIM64650

    Insurance agents
32. EIM70705

    Teachers in higher education
33. EIM70790

    Teachers and academics
34. EIM36850

    How capital allowances are given, and how balancing charges are taxed
35. EIM36870

    Claims and appeals
36. EIM36880

    UK based earnings and earnings charged on remittance
37. EIM36890

    Set-off of excess capital allowances against other income
38. EIM36900

    Capital allowances and loan interest relief
39. EIM36910

    Calculation of first year allowance
40. EIM36915

    Writing down allowances: restriction of allowance in year employment begins
41. EIM36925

    Adjustments for private use
42. EIM36930

    Balancing allowances and charges