The guidance is not a change of HMRC policy but is designed to give businesses a better understanding of how to make the most of available tax reliefs and to avoid making deliberate mistakes on forms.

‘HMRC have found some areas where there is a particular risk a plant and machinery claim may be inaccurate. We want to share information to help you manage those risks,’ HMRC warned.

‘Many common errors in claims appear to arise because the claimant makes assumptions rather than fully checking the facts of the transaction leading to a claim.

‘Fully checking the facts helps to show you have met your obligation to take reasonable care that your claim is correct.’

There are a number of capital allowances available for expenditure on plant or machinery, including annual investment allowance (AIA), full expensing and 50% first-year allowance, enhanced capital allowances in special tax sites, 100% first-year and writing down allowances.