Capital Allowances Act 2001 section 36

Restriction on qualifying expenditure in case of employment or office

Section 36 restricts the types of expenditure on plant and machinery that can qualify for capital allowances when the qualifying activity is an employment or office, rather than a trade or profession.

• Expenditure on motor vehicles or cycles by employees or office holders never qualifies for capital allowances
• Other plant and machinery expenditure only qualifies if the equipment is necessarily required for performing the duties of the employment or office
• The "necessarily" test is a strict requirement — the item must be essential, not merely useful or convenient
• "Cycle" takes its meaning from section 192(1) of the Road Traffic Act 1988