CA23070 | Plant and Machinery Allowances (PMA): qualifying expenditure: employments and offices

CAA01/S36

Expenditure incurred by an employee or office holder (CA20015) is only qualifying expenditure for PMAs if the asset

• was 'necessarily provided' for use in the performance of duties of the employment or office (see EIM36540), and

• is not a cycle or motocycle. (Mileage allowance relief may be available instead. See EIM31330 onwards).

Capital allowances are not given on assets provided solely for the taxpayer's own convenience or other personal reasons even if the employee or office holder uses them while working (see EIM36540 onwards).

Usually, an employer will provide any necessary equipment (for example, a computer) if an employee is expected to work from home, but exceptionally there may be cases where the employee provides the equipment and can claim PMAs. This is subject to the capital allowances contributions rules CA14100 in cases where the employer in fact meets the expenditure either directly or indirectly, and to the rules about non-qualifying use CA23087.