Ownership condition for claiming PMAs

In order for expenditure to be ‘qualifying expenditure’ for PMA purposes, the person must ‘own’ the plant or machinery as a result of incurring the expenditure (CA23010). Furthermore, a person cannot claim AIA, FYA or pool expenditure in a chargeable period unless the person ‘owns’ the plant or machinery at some time in that chargeable period (CAA01/S51A(1)(b), S52(1)(b) and S58(4)).

Ordinarily, ‘ownership’ for PMA purposes means absolute ownership in law or equity (Stokes v Costain Property Investments 57 TC 688).

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