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HMRC internal manual

Employment Income Manual

Deductions from earnings: capital allowances: apportionment of allowances where there is both business and private use

Sections 205 and 207 CAA 2001

The capital allowances legislation provides for apportionment of allowances where machinery or plant is used partly in performance of the duties and partly for other purposes.

Apportionment of capital allowances has to be made on a ‘just and reasonable’ basis having regard to all the circumstances, principally the actual use made of the item in the year of assessment.

For an illustration of how the apportionment is made, see example EIM36925.

As regards the use of assets for business entertaining, see EIM36580.