Taxes Consolidation Act 1997 section 293

Application to partnerships

Section 293 provides rules for how capital allowances balancing adjustments apply to machinery or plant used in a trade carried on in partnership.

• Balancing allowances or charges on partnership machinery or plant are made on the partners carrying on the trade at the time of the balancing event, regardless of any earlier changes in the partnership's membership, and are computed as if the trade had always been carried on by a sole trader
• Where machinery or plant used for the partnership trade belongs to one or more partners personally rather than to the partnership, capital allowances and balancing adjustments are calculated as though the asset had always been partnership property
• No balancing allowance or charge arises where a partner sells or gifts machinery or plant to another partner, provided it continues to be used for the partnership trade
• These partnership treatment rules do not apply where the partner who owns the machinery or plant receives rent or other payments from the partnership for its use, and those payments are deductible in computing the partnership's trading profits