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CA14800 | General: Contributions: Contributions towards MEA expenditure

From HM Revenue & Customs · Capital Allowances Manual

CAA01/S541 - S542

A person can claim MEA on a contribution made towards somebody else’s expenditure that qualifies for MEA if:

  • the general conditions for a contributions allowance are satisfied CA14400, and

  • the contribution is made for the purposes of a trade carried on, or about to be carried on, by the contributor.

Treat the person making the contribution as if the contribution were expenditure on an asset similar to the one towards which the contribution was made and that asset were in use for the purposes of the contributor’s trade at all material times. This means that the contribution can qualify for MEA.

If the contributor’s trade is transferred WDAs after the transfer are made to the person to whom the trade is transferred. If part of the trade is transferred make WDAs to the transferee to the extent that they are attributable to the part transferred.