Capital Allowances Act 1990

71Security

(1)This section applies where—

(a)an individual, or a partnership of individuals, carries on a trade, profession or vocation,

(b)expenditure is incurred by the individual or partnership in connection with the provision for or use by the individual, or any of the individuals, of a security asset,

(c)no sum in respect of the expenditure could be deducted in computing the profits or gains of the trade, profession or vocation for the purposes of Case I or Case II of Schedule D, and

(d)apart from this section, paragraph (a) or paragraph (b) (or both) of section 24(1) would not apply.

(2)In a case where this section applies, this Part shall apply as if—

(a)the expenditure were capital expenditure incurred on the provision of machinery or plant wholly and exclusively for the purposes of the trade, profession or vocation concerned,

(b)in consequence of the expenditure being incurred, the machinery or plant belonged to the individual or partnership carrying on the trade, profession or vocation, and

(c)the disposal value of the machinery or plant were nil.

(3)Subsection (2) above shall not apply unless the asset is provided or used to meet a threat which—

(a)is a special threat to the individual’s personal physical security, and

(b)arises wholly or mainly by virtue of the particular trade, profession or vocation concerned.

(4)Subsection (2) above shall not apply unless the person incurring the expenditure—

(a)has as his sole object in doing so the meeting of that threat, and

(b)subject to subsection (5) below, intends the asset to be used solely to improve personal physical security,

(5)In a case where—

(a)apart from subsection (4)(b) above, subsection (2) would apply, and

(b)the person incurring the expenditure intends the asset to be used partly to improve personal physical security,

subsection (2) above shall nevertheless apply, but only so as to treat the appropriate proportion of the expenditure there mentioned as capital expenditure incurred as there mentioned.

(6)For the purposes of subsection (5) above, the appropriate proportion of the expenditure mentioned in subsection (2) above is such proportion of that expenditure as is attributable to the intention of the person incurring it that the asset be used to improve personal physical security.