OT42520 - Non-Residents Working on the UK Continental Shelf: Capital Allowances - Plant & machinery brought into the UK - Entitlement to allowance

CAA01\S13

Without the provision at CAA01\S13, a taxpayer introducing any plant or machinery previously used elsewhere in the worldwide trade into the UK Continental Shelf activities would have no entitlement to capital allowances. CAA01\S13 provides for a person to be treated as having incurred qualifying expenditure if they start to use the plant or machinery in a qualifying activity.

The section says:

  1. This section applies if a person:> - brings plant or machinery into use for the purposes of a qualifying activity carried on by him, and > - on the date when he does so, owns the plant or machinery as a result of having incurred capital expenditure (鈥渁ctual expenditure鈥�) on its provision for purposes other than those of that qualifying activity.
  2. The person is to be treated:> - as having incurred capital expenditure (鈥渘otional expenditure鈥�) on the provision of the plant or machinery for the purposes of the qualifying activity on the date on which it is brought into use for those purposes, and > - as owning the plant or machinery as a result of having incurred that expenditure.

See OT42530 - OT42610 for the rules that establish the amount of qualifying expenditure in these circumstances.