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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Deductions from earnings: capital allowances: conditions to be met if capital allowances are to be given

Section 36 CAA 2001

Note that employees are not entitled to claim capital allowances for a car, van, motorcycle or bicycle after 5 April 2002. For 2002/03 onwards, the only way that employees can obtain tax relief for using their own vehicle for work is by a deduction for mileage allowance relief (see EIM31330 onwards). If you need help with a claim to capital allowances for 2001/02 or earlier in respect of a car, van, motor cycle or bicycle, please refer to the Schedule E (SE) Manual.

General conditions relating to capital allowances for employees

The general rule is that employees and office holders are entitled to capital allowances for expenditure that they incur on acquiring

  • machinery or plant (see EIM36530)
  • which is necessarily provided for use in the performance of their duties (see EIM36540).

The ‘necessarily provided’ test is a special rule which only applies to employees and office holders. Otherwise, the capital allowances legislation in Part 2 CAA 2001 appliesto offices and employments in the same way that it applies to trades.