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The capital expenditure on plants and machinery under cash basis is allowable deduction under trading profits.
In property income, expenses related to plant and machinery are also deductible under cash basis.
But I’m not sure if capital expenditure on plants and machinery is allowable.
Is it an allowable deduction?The cash basis works the same for both property and trading income.
Capital allowances on plant and machinery is not an allowable deduction, with the exception of cars.
Other expenditure on plant and machinery is simply an allowable deduction against income (as if it were a revenue expense).
So purchase of plant and machinery can be deducted against property income as well? (As a revenue expenditure)
Yes, if it qualifies as P&M (ex cars) it’s treated as if it were revenue expenditure and therefore deductible as an expense.
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