What Expenditure Applies?

The applicable expenditure will generally be the cost of the plant and machinery to the taxpayer.

It does not matter how long a building has been owned or when the expenditure was incurred, as a claim can be made at any time. Indeed it may be possible to roll forward a maximum of the two previous year's expenditure into the current tax year.

Where a property has been purchased, capital allowances are available as an apportionment of the purchase price.

It is necessary to separate the cost of the plant and machinery from the land and the buildings and then to apportion its cost from the purchase price using valuation techniques approved by the Valuation Office.

Where a building is developed or refurbished directly by the taxpayer, the cost of the plant and machinery may usually be extracted from the itemised build up of the cost documentation and agreed final account.

Tenants may also qualify where they incur expenditure on the plant and machinery in fitting out a building.