Capital Allowances Act 2001 section 14

Use for qualifying activity of plant or machinery which is a gift

Section 14 deals with how capital allowances work when a person receives plant or machinery as a gift and then uses it in a qualifying activity.

• Where plant or machinery is received as a gift and used in a qualifying activity, the recipient is treated as having incurred capital expenditure on the date it is first put to that use
• The amount of deemed capital expenditure equals the market value of the plant or machinery on the date it is brought into use for the qualifying activity
• Whether the expenditure is treated as wholly or only partly for the qualifying activity depends on the extent to which the asset is actually used for that activity
• Special rules apply where the expenditure relates to pre-trading mineral exploration and access costs