Capital Allowances Act 1990
Part I Industrial Buildings and Structures
Chapter I Initial Allowances
1 Buildings and structures in enterprise zones.
2 Transitional relief for regional projects.
2AInitial allowances: contracts entered into between October 1992 and November 1993.
Chapter II Writing-down Allowances, Balancing Allowances and Balancing Charges
3 Writing-down allowances.
4 Balancing allowances and balancing charges.
4A Realisation of capital value.
5 Restriction of balancing allowances on sale of industrial buildings or structures.
6 Buildings and structures (including hotels) in enterprise zones.
7 Other hotels.
Chapter III Provisions Supplementary to Chapters I and II
8 Writing off of expenditure and meaning of “residue of expenditure".
9 Manner of making allowances and charges.
10 Purchases of buildings and structures.
10A Purchases of buildings and structures: special provision for enterprise zones.
10B Purchases of buildings and structures in enterprise zones within two years of use.
10CPurchases of buildings and structures: allowances under section 2A.
10D Arrangements affecting the value of the purchased interest.
11 Long leases.
12 Expenditure on repair of buildings.
13 Expenditure on sites for machinery and plant.
14 Sports pavilions.
15 Temporary disuse of industrial buildings or structures.
15ZA Temporary disuse: manner of making allowances and charges in certain cases.
15A Balancing charge after cessation of trade.
16 Requisitioned land, holding over of leased land and other special cases.
17 Mining structures etc: balancing allowances carried back to earlier chargeable periods.
17A Enterprise zones: exclusion of expenditure.
18 Definition of “industrial building or structure".
19 Meaning of “qualifying hotel".
20 Meaning of “the relevant interest".
21 Other interpretation of Part I.
Part II Machinery and Plant
Chapter I Allowances and Charges: General Provisions
22 First-year allowances: transitional relief for regional projects.
22A Expenditure of a small company or small business.
23 Information relating to first-year allowances.
24 Writing-down allowances and balancing adjustments.
25 Qualifying expenditure.
26 The disposal value.
27 Professions, employments, vocations etc.
28 Investment companies.
28A Schedule A cases.
29 Furnished holiday lettings.
Chapter II Ships
30 First-year allowances.
31 Writing-down allowances.
32 Ships not used in the actual trade.
33 Exclusion of section 31.
Balancing charges in respect of ship disposals etc.
33A Deferment of balancing charge.
33B Amount brought into account in respect of the old ship.
33C Reimposition of deferred charge.
33D Expenditure to which deferments attributed.
33E Qualifying ships.
33F Procedural provisions relating to deferred charges.
Chapter III Expensive Motor Cars
34 Writing-down allowances etc.
35 Contributions to expenditure, and hiring of cars.
36 Definition of “motor car", etc.
Chapter IV Short-Life Assets
37 Election for certain machinery or plant to be treated as short-life assets.
38 Assets which cannot be treated as short-life assets.
Chapter IVA Long-life assets
Expenditure to which Chapter applies
38A Application of Chapter.
38B Expenditure excluded from the application of the Chapter.
38C Exclusion of Chapter where limit for individuals and partnerships not exceeded.
38D Exclusion of Chapter where company’s limit not exceeded.
Rules applying to expenditure on long-life assets
38E Separate pools for expenditure on long-life assets.
38F Modifications applying to pools for long-life assets.
38G Disposal value of long-life assets.
Transitional provisions
38H Transitional provisions.
Chapter V Leased Assets and Inexpensive Cars
39 Meaning of “qualifying purpose".
40 Meaning of “short-term leasing" and “the requisite period".
41 Writing-down allowances etc. for leased assets and inexpensive cars.
42 Assets leased outside the United Kingdom.
43 Joint lessees: new expenditure.
44 Further provisions relating to joint lessees in cases involving new expenditure.
45 Joint lessees: old expenditure.
46 Recovery of excess relief: new expenditure.
47 Recovery of excess relief: old expenditure.
48 Information relating to allowances made in respect of new expenditure.
49 Information relating to allowances made in respect of old expenditure.
50 Interpretation of Chapter V.
Chapter VI Fixtures
51 Application and interpretation of Chapter VI.
52 Expenditure incurred by holder of interest in land.
53 Expenditure incurred by equipment lessor.
54 Expenditure included in consideration for acquisition of existing interest in land.
55 Expenditure incurred by incoming lessee: transfer of allowances.
56 Expenditure incurred by incoming lessee: lessor not entitled to allowances.
56A Restriction on duplicate allowances under sections 54 and 56.
56B Fixtures on which a former owner had an allowance.
56C Fixtures on which an allowance has been given under Part I.
56D Fixtures on which an allowance has been given under Part VII.
57 Fixtures treated as ceasing to belong to particular persons.
58 Equipment lessors: special provisions.
59 Disposal value of fixtures in certain cases.
59A Disposal values in avoidance cases.
59B Election to use alternative apportionment.
59C Elections under section 59B: supplemental.
Chapter VII Miscellaneous Expenditure
60 Machinery and plant on hire-purchase etc.
60A Machinery and plant on hire-purchase etc.: fixtures.
61 Machinery and plant on lease.
62 Treatment of demolition costs.
62A Special allowance for demolition costs related to offshore machinery or plant.
62B Treatment of post-cessation abandonment expenditure related to offshore machinery or plant.
63 Mineral extraction.
64 Transfers of interests in oil fields.
65 Partnership using property of a partner.
66 Building alterations connected with installation of machinery or plant.
67 Expenditure on thermal insulation.
67A Computer software.
68 Exclusion of certain expenditure relating to films, tapes and discs.
69 Expenditure on fire safety.
70 Expenditure on safety at sports grounds.
71 Security.
72 Security: supplementary.
Chapter VIII Supplementary Provisions
73 Manner of making allowances and charges.
74 Allowances not available: expenses of Members of Parliament.
75 Further restrictions on allowances.
76 Extension of section 75.
76A Special provision for finance lease cases.
77 Successions to trades: connected persons.
78 Succession to trades where no election made under section 77.
79 Effect of use partly for trade etc. and partly for other purposes.
80 Effect of subsidies towards wear and tear.
81 Effect of use after user not attracting capital allowances, or after receipt by way of gift.
82 Capital expenditure to which this Part does not apply.
82A Meaning of “finance lease”.
83 Other interpretative provisions.
Part III Dwelling-houses Let on Assured Tenancies
84 Application of Part III.
85 Writing-down allowances.
86 Qualifying dwelling-houses.
87 Balancing allowances and charges and withdrawal of initial allowances in certain cases.
88 Dwelling-houses not continuously qualifying dwelling-houses.
89 Supplementary provisions where dwelling-house ceases to be a qualifying dwelling-house.
90 Writing off of expenditure and meaning of “residue of expenditure".
91 Buildings bought unused.
92 Manner of making allowances and charges.
93 Repairs, and double allowances.
94 Holding over by lessees, etc.
95 The relevant interest.
96 The appropriate capital expenditure.
97 Interpretation.
Part IV Mineral Extraction
Chapter I Allowances and Charges
98 Writing-down and balancing allowances.
99 Disposal receipts.
100 Balancing charges: excess of allowances etc. over expenditure.
101 Occasions of balancing allowances.
102 Treatment of qualifying expenditure on mineral exploration and access.
103 Demolition costs.
104 Manner of making allowances and charges.
Chapter II Qualifying Expenditure
105 General provisions.
106 Pre-trading expenditure on machinery or plant which is sold etc.
107 Pre-trading exploration expenditure.
108 Contributions by mining concerns to public services etc. outside the United Kingdom.
109 Restoration expenditure.
Chapter III Limitations on Qualifying Expenditure etc.
110 Expenditure on the acquisition of land.
111 Reduction of qualifying expenditure for premium relief.
112 Restriction of disposal receipts.
113 Assets formerly owned by traders.
114 Assets previously acquired.
115 Expenditure partly attributable to mineral exploration and access.
116 Oil licences etc.
117 Transfer of mineral assets within a group.
118 Assets formerly owned by non-traders.
118A Disposals of oil licences relating to undeveloped areas.
Chapter IV Supplementary Provisions
119 Transitional provisions relating to old expenditure.
120 Time when expenditure is incurred.
121 Interpretation of Part IV.
Part V Agricultural Buildings etc.
Chapter I Agriculture
122 Allowances for expenditure incurred before 1st April 1986.
123 Allowances for expenditure incurred after 31st March 1986.
124 Expenditure qualifying for allowances.
124AInitial allowances: contracts entered into between October 1992 and November 1993.
124B Restriction on writing-down allowance where initial allowance made.
125 Meaning of “major interest" and “the relevant interest".
126 Transfers of relevant interest.
127 Buildings etc. bought unused.
127APurchases of buildings and structures: cases involving initial allowances.
128 Balancing allowances and charges.
129 Balancing events.
130 Restriction of balancing allowances on sale of buildings.
Chapter II Forestry
131 Forestry: transitional provisions.
Chapter III Supplemental
132 Manner of making allowances and charges.
133 Interpretation of Part V.
Part VI Dredging
134 Allowances for expenditure on dredging.
135 Interpretation of Part VI.
Part VII Scientific Research
136 Allowances for expenditure on scientific research not of a capital nature, and on payments to research associations, universities etc.
137 Allowances for capital expenditure on scientific research.
138 Assets ceasing to belong to traders.
138A Disposal of oil licences etc.
138B Disposal of oil licences: election for alternative tax treatment.
139 Supplemental.
Part VIII Supplementary Provisions
140 Income tax allowances and charges in taxing a trade etc.
141 Other income tax allowances.
142 Restriction of set-off of allowances against general income.
143 Tax agreements.
144 Corporation tax allowances and charges in taxing a trade.
145 Other corporation tax allowances.
145A Corporation tax allowances: claims.
146 Writing-down allowances under Parts V and VI.
147 Exclusion of double allowances.
148 Double allowances: transitional provisions.
149 Companies not resident in the United Kingdom.
150 Apportionment of consideration, and exchanges and surrenders of leasehold interests.
151 Procedure on apportionments.
152 Succession to trades etc.
152A Insurance companies: transfers of business.
152B Transfer of a UK trade.
153 Subsidies, contributions etc.
154 Allowances in respect of contributions to capital expenditure.
155 Further provisions relating to capital contributions.
156 Meaning of “sale, insurance, salvage or compensation moneys".
157 Sales between connected persons etc.
158 Further provisions relating to sales without change of control or between connected persons.
159 Capital expenditure, capital sums and time when capital expenditure is incurred.
159A Additional VAT liabilities and rebates.
160 Meaning of “period of account”.
161 Other interpretative provisions.
162 Application to Scotland.
163 Continuity and construction of enactments etc.
164 Commencement, amendments and repeals.
165 Short title.
SCHEDULES
SCHEDULE AA1 Exclusions from expenditure on machinery or plant
Buildings
1(1) For the purposes of this Act expenditure on the...
Structures, assets and works
2(1) For the purposes of this Act expenditure on the...
1“ Dock ” includes— (a) any harbour, wharf, pier, marina...
2An industrial structure, that is, anything (other than a building)...
Land
3(1) For the purposes of this Act expenditure on the...
General exemptions
4Paragraphs 1(1) and 2(1) above do not apply to any...
Interpretation
5(1) In this Schedule— (a) “ structure ” means a...
SCHEDULE A1 Corporation Tax Allowances: Claims
Introductory
1(1) This Schedule has effect as respects claims for allowances...
Time limits
2(1) No claim for an accounting period of a company...
3(1) No claim for an accounting period of a company...
4(1) No claim for an accounting period of a company...
5Where under paragraph 2, 3 or 4 above a claim...
6(1) A claim for an accounting period of a company...
Method of making claim
7(1) A claim shall be made by being included in...
Nature of claim
8A claim, other than one under paragraph 6 above, shall...
9(1) A claim under paragraph 6 above shall be expressed...
Adjustments
10(1) All such assessments or adjustments of assessments shall be...
11Where a claim affecting an amount determinable under section 41A...
SCHEDULE 1 Consequential amendments
Taxes Management Act 1970 c. 10
1(1) In sections 57(3)(b) and 58(3)(b) of the Taxes Management...
Social Security Act 1975 c. 14
Social Security (Northern Ireland) Act 1975 c. 15
2. . . . . . . . . ....
Capital Gains Tax Act 1979 c. 14
3. . . . . . . . . ....
Finance Act 1982 c. 39
4In section 137 of the Finance Act 1982—
London Regional Transport Act 1984 c. 32
5In paragraph 5 of Schedule 5 to the London Regional...
Films Act 1985 c. 21
6In section 6(1) and in paragraphs 2 and 3 of...
Trustee Savings Bank Act 1985 c. 58
7In paragraph 1 of Schedule 2 to the Trustee Savings...
Income and Corporation Taxes Act 1988 c. 1
8(1) The Income and Corporation Taxes Act 1988 shall be...
Finance Act 1988 c. 39
9(1) . . . . . . . . ....
Finance Act 1989 c. 26
10In section 121(2) of the Finance Act 1989 for the...
Electricity Act 1989 c. 29
11In paragraph 5 of Schedule 11 to the Electricity Act...
SCHEDULE 2 Repeals
CAPITAL ALLOWANCES ACT 1990 TABLE OF DERIVATIONSNote:The following abbreviations are used in this Table:—

Capital Allowances Act 1990

1990 c. 1

An Act to consolidate certain enactments relating to capital allowances.

X1C1X2Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—C5C2C7C4C3C8C6C12C10C14C9C11C13C17C16C15C18C19

Annotations:
Editorial Information
X1

A table showing the derivation of the provisions of this consolidation Act will be found at the end of the Act. The table has no official status.

X2

General amendments to Tax Acts, Income Tax Acts, and/or Corporation Tax Acts made by legislation after 1.2.1991 are noted against Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) but not against each Act

Modifications etc. (not altering text)
C5

Act modified (3.5.1994) by Finance Act 1994 (c. 9), Sch. 24 para. 22(2)

C2

Act applied (3.5.1994) by Finance Act 1994 (c. 9), s. 118(8)

C4

Act modified (3.5.1994) by Finance Act 1994 (c. 9), Sch. 24 para. 21(1)

C3

Act modified (3.5.1994) by Finance Act 1994 (c. 9), Sch. 24 para. 20(1)

C8

Act construed as one with Finance Act 1994 (c. 9), Sch. 24 (3.5.1994) by Finance Act 1994 (c. 9), Sch. 24 para. 1(4)(c)

C6

Act excluded (3.5.1994) by Finance Act 1994 (c. 9), Sch. 24 para. 22(3)(4)

C12

Act modified (19.9.1994) by Coal Industry Act 1994 (c. 21), s. 68(4), Sch. 4 para. 21(2); S.I. 1994/2189, art. 2, Sch.

C10

Act modified (19.9.1994) by Coal Industry Act 1994 (c. 21), Sch. 4 para. 20(1); S.I. 1994/2189, art. 2, Sch.

C14

Act modified (19.9.1994) by Coal Industry Act 1994 (c. 21), Sch. 4 para. 21(4); S.I. 1994/2189, art. 2, Sch.

C9

Act modified (19.9.1994) by Coal Industry Act 1994 (c. 21), Sch. 4 para. 19(1)(2)-(4); S.I. 1994/2189, art. 2, Sch.

C11

Act restricted (19.9.1994) by Coal Industry Act 1994 (c. 21), s. 68(4), Sch. 4 para. 20(7); S.I. 1994/2189, art. 2, Sch.

C13

Act modified (19.9.1994) by Coal Industry Act 1994 (c. 21), Sch. 4 para. 21(3); S.I. 1994/2189, art. 2, Sch.

C17

Act modified by 1988 c. 1, s. 434E(4)-(6) (as inserted (with effect in accordance with Sch. 8 paras. 55(2), 57(1) of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 23(1))

C16

Act modified by 1988 c. 1, s. 434D (as inserted (with effect in accordance with Sch. 8 paras. 55(2), 57(1) of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 23(1))

C15

Act restricted (with effect in accordance with s. 41(10) of the amending Act) by Finance Act 1995 (c. 4), s. 41(7)

C18

Act modified (with effect for the year 1996-97 in relation to trades, professions or vocations set up and commenced before 6.4.1994) by Finance Act 1996 (c. 8), s. 135(4)

C19

Act modified (with application in accordance with Sch. 12 para. 11(1) of the amending Act) by Finance Act 1997 (c. 16), Sch. 12 para. 11(8)(14) (with Sch. 12 paras. 13, 14)