2 General means of giving effect to capital allowancesU.K.
(1)Allowances and charges are to be given effect—
(a)for income tax purposes, in calculating income for a chargeable period, and
(b)for corporation tax purposes, in calculating profits for a chargeable period.
(2)For the meaning of “chargeable period”, see section 6.
(3)Subsection (1) needs to be read with the following provisions about giving effect to allowances and charges—
sections 247 to 262 (plant and machinery allowances);
sections 352 to 355 (industrial buildings allowances);
[F1sections 360Z and 360Z1 (business premises renovation allowances)]
sections 391 and 392 (agricultural buildings allowances);
[F2section 393T (flat conversion allowances);]
section 432 (mineral extraction allowances);
section 450 (research and development allowances);
section 463 (know-how allowances);
sections 478 to 480 (patent allowances);
section 489 (dredging allowances);
section 529 (assured tenancy allowances).
(4)In subsection (1)(b) “profits” has the same meaning as in section 6 of ICTA.
Textual Amendments
F1Words in s. 2(3) inserted (with effect in accordance with s. 92 of the amending Act) by Finance Act 2005 (c. 7), Sch. 6 para. 3; S.I. 2007/949, art. 2
F2S. 2(3): entry inserted (with effect as mentioned in s. 67 of the amending Act) by Finance Act 2001(c. 9), s. 67, Sch. 19 Pt. 2 para. 2