EIM36500 | Deductions from earnings: capital allowances: introduction: arrangement of guidance: contents

Section 36 CAA 2001

Introduction

Employees and office holders can, in certain circumstances, claim deductions for plant and machinery under the general rule for employees’ expenses in Section 336 ITEPA 2003 if they incur insubstantial expenditure on items such as tools and office equipment described at EIM36510.

For more substantial expenditure on plant or machinery, capital allowances my be available instead. The capital allowance legislation in Part 2, CAA01 applies in the same way to offices and employments as it does to trades (see CA20006). However, in addition to the ordinary rules, an employee or office holder can only claim allowances if the asset is 'necessarily provided' for use in the performance of the duties or office. Furthermore, an employee or office holder cannot claim capital allowances for a cycle or motor vehicle.

The detailed guidance on capital allowances for employees and office holders is arranged as shown in the following tables.