CA20015 - Plant and Machinery Allowances (PMA): introduction: employment or office - the ‘necessarily’ condition

CAA01/S20 & CAA01/S36

Where the qualifying activity is an office or employment, additional restrictions apply:

• From 2002/03, employees and office holders cannot claim PMAs on the provision of a motor vehicle or cycle. They may be able to claim statutory authorised mileage relief instead; and 
• for other assets, an employee or office holder cannot claim PMAs unless the asset is 'necessarily provided' for use in the office or employment.

The CA legislation about employments does not apply to divers and dive supervisors in the North Sea.

Up until 2001/02, an employee or office holder who bought a car, other road vehicle or a cycle had the choice of claiming PMAs or taking part in the Fixed Car Profit Scheme. There are special rules for calculating a balancing allowance where an employee has taken part in the Fixed Car Profit scheme for some chargeable periods and claimed PMAs for others CA23550.