Capital Allowances Act 2001 section 119

Notice of change of use of plant or machinery

Section 119 requires the owner of plant or machinery to notify HMRC when assets that have received capital allowances are subsequently used for non-protected overseas leasing during the designated period.

• Where plant or machinery has received a first-year allowance or normal writing-down allowance and is later used for overseas leasing that is not protected leasing, the owner must notify HMRC of this change of use.
• The notice must identify the non-UK-resident person to whom the plant or machinery has been leased, and if the notice relates to a chargeable period, it must list all relevant items of plant or machinery for that period.
• The notice must normally be given within three months after the end of the chargeable period in which the plant or machinery is first used for non-protected overseas leasing.
• If the owner does not know and could not reasonably be expected to know about the overseas leasing use at the end of that three-month window, they have 30 days from the date they become aware of it to give notice instead.