Although plant and machinery allowances are in principle given to employees, there are in practice numerous restrictions on the allowances available.

Vehicles and bicycles

No capital allowances are available for cars, other vehicles or cycles funded by an employee; employees who use their own cars for business purposes may only claim tax-free reimbursement from their employers using the fixed rates of 45p per mile for the first 10,000 business miles driven and 25p per mile thereafter. If employees claim a lesser amount (or no reimbursement at all), then they can claim mileage allowance relief on any shortfall. See also ¶200-500.

Legislation: CAA 2001, s. 36(1)(a)

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