In order to qualify for allowances, expenditure must be incurred on the ‘provision’ of the equipment. This term is wider than the term ‘acquisition’: thus a payment made to retain ownership of an asset as well as to acquire the asset in the first place may be expenditure on the ‘provision’ of plant or machinery – see Bolton v International Drilling Co Ltd [1983] BTC 3.

Want to read more?

This content requires a Croner-i Tax and Accounting subscription.

No subscription?

Contact us to discuss your requirements.