Taxes Consolidation Act 1997 section 380T

Allowance for machinery or plant

Section 380T provides accelerated wear and tear allowances for new machinery or plant forming part of a new installation where a business relocates from a toxic docklands area.

• Where expenditure on a new installation includes expenditure on new machinery or plant (excluding road vehicles), the normal 12.5% wear and tear rate under section 284 is replaced by a 100% rate on qualifying expenditure.
• In addition to the 100% wear and tear allowance, a separate additional allowance of 50% of the qualifying expenditure on that plant or machinery is available for the chargeable period in which the expenditure is incurred.
• Both allowances are made in taxing the relevant trade, meaning they reduce the trading income against which they are set.
• For the purpose of calculating wear and tear allowances under section 284, the additional 50% allowance is ignored — it does not reduce the qualifying expenditure base for section 284 purposes.

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