Section 398F — Corporation Tax Act 2010: Limit on availability of capital allowances to A

Limit on availability of capital allowances to A 398F 1 Expenditure incurred by A in providing plant or machinery is not qualifying expenditure for the purposes of Part 2 of CAA 2001 if the expenditure is incurred on the acquisition or creation of an independent asset.

2 An asset is an “independent” asset if, in the normal course of business—

a it could be used individually (whether or not it could also be used in conjunction with another asset or other assets as a constituent part of a single asset consisting of more than one asset (a “combined asset”)), or b it could be used (at different times) as a constituent part of different combined assets.