My client has asked whether tax relief can be claimed if he buys a laptop for use in his employment. He is required by his employer to provide his own laptop for work.
Capital allowances may be due, in which case a 100% annual investment allowance could be claimed ( CAA 2001, s. 36(1) ):
‘ 36(1) Where the qualifying activity consists of an employment or office–
(a)expenditure on the provision of a mechanically propelled road vehicle, or a cycle, is not qualifying expenditure, and
(b)other expenditure is qualifying expenditure only if the plant or machinery is necessarily provided for use in the performance of the duties of the employment or office.’
Note that the item in question must be necessarily provided. That is a tight requirement, and anything less will not suffice. The necessity seems to be implicit in your client’s circumstances as the employer requires it but knowing why that is so and what your client’s employment is would help.
HMRC’s guidance on capital allowances on computers for employees at EIM36730 is rather negative and starts from the viewpoint that most employees will not be able to meet the statutory requirements. HMRC then give an example of where they would accept the necessarily provided condition is met, but do add that each case will depend upon its own facts.
If capital allowances are due, then remember that there will be a restriction for any private use under CAA 2001, Pt. 2, Ch. 15 . HMRC give an example for an employee using a computer at EIM36925 .
Other useful links
For commentary on capital allowances for employees, see Direct Tax In-Depth at ¶235-870.
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