Capital Allowances (Essential Reading)

Question 1

Date of expenditure for capital allowances purposes?

Answer 1

Expenditure is generally deemed to be incurred when the obligation to pay becomes unconditional

Question 2

When is the date of expenditure?

Answer 2

Often be the date of delivery, even if payment is actually required later than this date

Question 3

How is pre-trading expenditure treated for capital allowances purposes?

Answer 3

As if it had been incurred on the first day on which the business is carried on

Question 4

When does capital expenditure on plant and machinery qualify for capital allowances?

Answer 4

If plant or machinery is used for a qualifying activity, such as a trade

Question 5

What does not usually qualify as expenditure on plant?

Answer 5

Expenditure on a building and on any asset which is incorporated in a building

Question 6

What following assets count as buildings? (Walls)

Answer 6

Walls, floors, ceilings, doors, gates, shutters, windows and stairs

Question 7

What following assets count as buildings? (Mains)

Answer 7

Mains services, systems of water, eelctricity and gas

Question 8

What following assets count as buildings? (Waste)

Answer 8

Waste disposal, sewerage and drainage system

Question 9

What following assets count as buildings? (Shafts)

Answer 9

Shafts or other structures for lifts

Question 10

Expenditure on structures and on works involving the alteration of land not qualify for?

Answer 10

Expenditure on plant

Question 11

What is meant by a structure?

Answer 11

A fixed structure of any kind, other than a building

Question 12

Statute for various assets which may still be plant (machinery)

Answer 12

Any machinery not within any other item in this list

Question 13

Statute for various assets which may still be plant (gas)

Answer 13

Gas and weage systems provided mainly to meet particular requirements of the trade or serve particular machinery or plant

Question 14

Statute for various assets which may still be plant (manufacturing)

Answer 14

Manufacturing or processing and storage equipment

Question 15

Statute for various assets which may still be plant (Cookers)

Answer 15

Cookers, washing machines and refrigeration, sanitary ware and furnishing

Question 16

Statute for various assets which may still be plant (Hosits)

Answer 16

Hoists

Question 17

Statute for various assets which may still be plant (Sound)

Answer 17

Sound insulation

Question 18

Statute for various assets which may still be plant (Computer)

Answer 18

Computer, telecommunication

Question 19

Statute for various assets which may still be plant (Sprinkler)

Answer 19

Sprinkler equipment, fire alarm and burgular alarm systems

Question 20

Statute for various assets which may still be plant (Partition)

Answer 20

Partition walls, where movable and intended to be moved

Question 21

Statute for various assets which may still be plant (Decorative)

Answer 21

Decorative assets provided for enjoyment of the public in the hotel

Question 22

Statute for various assets which may still be plant (Moveable)

Answer 22

Moveable buildings intended to be moved in course of the trade

Question 23

Statute for various assets which may still be plant (Altering)

Answer 23

Altering land only for installing machinery or plant

Question 24

What does land exclude?

Answer 24

Buildings, structures and assets which are installed or fixed to land in such a way as to become part of the land for general purposes

Question 25

Does land qualify for plant and machinery?

Answer 25

No

Question 26

Does expenditure on computer software qualify for as expenditure on plant and machinery?

Answer 26

Yes