Taxes Consolidation Act 1997 section 284

Wear and tear allowances

Section 284 sets out the rules for claiming wear and tear allowances on capital expenditure on machinery and plant used in a trade, including the applicable rates, special regimes and restrictions.

• Wear and tear allowances are available where machinery or plant is owned and in use for trade purposes at the end of the chargeable period.
• The rate of allowance depends on when the expenditure was incurred, with different regimes before 1 January 2001, between 1 January 2001 and 3 December 2002, and from 4 December 2002.
• Special rules apply to road vehicles, taxis and short-term hire vehicles, certain sea fishing boats, and short accounting periods.
• Total allowances, including initial allowances, cannot exceed the actual cost, and no allowance is given for industrial buildings.

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