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I’m a bit confused as to whether employees can claim capital allowances, and if so, what they are entitled to claim for.
In my BPP text book, it states that “both unincorporated businesses and companies are entitled to capital allowances”. There is no mention of employees, so I assume the implication is that they are not entitled to it.
However, in question 19 at the back of the text book, the answer (for an employee) includes an AIA for a computer.
In another question in the BPP practice and revision kit, it asks you to ignore any capital allowances that the employee might be entitled to (I can’t find the question now).
Thanks for your help.
Capital allowances are available for plant and machinery necessarily provided by an employee for use in his or her duties of employment.
Capital allowances will be available for example where an employee uses his own computer for business use but these will of course be restricted to the business use proportion.
I would suggest however that at this stage you should focus your attention on the core exam topic areas and not worry yourself about very small points of detail – there are a lot of them in tax! Good luck!
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