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DVDs and blu-ray discs with a useful economic life of two years or more will qualify as plant. For more on the definition of plant for capital allowances purposes, see CA21010 onwards. »Ê¹ÚÌåÓýapp two year test is discussed in CA21100.

Where the two year test is met, capital allowances may be claimed both on the DVDs and blu-ray discs that form the original library and on any additions to that library. A short life asset election may be made, see CA23640.

Capital allowances may also be claimed on replacement DVDs and blu-ray discs that are sufficiently durable to qualify as plant.

For guidance on capital allowance claims, see CA11100 onwards.

Alternatives to capital allowances

»Ê¹ÚÌåÓýapp trader may decide to claim the statutory renewals allowance instead of capital allowances (see BIM67210).

If the item has a useful economic life of less than two years, and so does not qualify for capital allowances, the valuation basis can be used. For more details and a discussion of the meaning of useful economic life in the context of DVDs/blu-ray discs, see BIM67220.