Capital Allowances Act 1990 (repealed)

147 Exclusion of double allowances. U.K.

(1) Where an allowance is made to any person in respect of capital expenditure under Part I, III, IV, V, VI or VII—

(a) no allowance shall be made to him under any other of those Parts [F1 or section 22]—

(i) in respect of that expenditure, or

(ii) in relation to the construction, provision or acquisition of any asset to the construction, provision or acquisition of which the first-mentioned allowance relates, and

(b) that expenditure and any expenditure relating to the provision of any asset to the provision of which the first-mentioned allowance relates shall not be taken into account in determining his qualifying expenditure for the purpose of any allowance or charge under section 24.

(2) Where in the case of any person [F2 an allowance is made under section 22 in respect of any capital expenditure or] an allowance or charge under section 24 is made by reference to an amount of qualifying expenditure which took account of a particular amount of capital expenditure, no allowance shall be made to him under any Part of this Act other than Part II—

(a) in respect of that capital expenditure, or

(b) in relation to the provision of any asset if that capital expenditure related to the provision of that asset.

[F3 (2A) Subject to subsection (2B) below, where—

(a) a person entitled to do so has at any time made a claim for an allowance under any of the preceding Parts of this Act, other than Part II, and

(b) that claim is for an allowance in respect of capital expenditure relating, in whole or in part, to the construction, acquisition or provision of an asset,

no capital expenditure (whenever incurred) relating to the provision of that asset shall, by virtue of Chapter VI of Part II, be brought into account at any time after that time by any person at all.

(2B) Subsection (2A) above shall not prevent capital expenditure from being brought into account by virtue of Chapter VI of Part II where—

(a) the only claim made under a provision of this Act not contained in Part II is a claim under Part I or Part VII; and

(b) section 56C or 56D would apply by reference to that claim in relation to any claim for that expenditure to be so brought into account.

(2C) Where capital expenditure relating to the provision of any asset has at any time been brought into account by virtue of Chapter VI of Part II by any person entitled to do so, no capital expenditure (whenever incurred) relating to the construction, acquisition or provision of that asset shall, at any time after that time, be the subject of a claim made, by any person at all, for an allowance under any of the preceding Parts of this Act other than Part II.

(2D) For the purposes of subsections (2A) to (2C) above a person shall be taken to bring an amount of capital expenditure into account by virtue of Chapter VI of Part II if—

(a) he makes a claim for an allowance in respect of that expenditure, as expenditure on the provision of a fixture within the meaning of that Chapter,

(b) he makes a return in which that expenditure is taken into account, as expenditure on the provision of such a fixture, in determining his qualifying expenditure for the purpose of an allowance or charge under section 24, or

(c) he gives notice of any such amendment of a return as provides for that expenditure to be taken into account as mentioned in paragraph (b) above.]

(3) In this section—

• “asset” means an asset of any kind, including a building or structure, and

• “capital expenditure” includes any contribution to capital expenditure, [F4 and

• “return” means any return required to be made under the Taxes Management Act 1970 for income tax or corporation tax purposes,]

and references to the provision of an asset include references to its construction or acquisition.

(4) This section shall not have effect in relation to any chargeable period ending before 27th July 1989.

Textual Amendments

F1 Words in s. 147(1)(a) inserted (27.7.1993 with effect as mentioned in s. 115(5) of the amending Act) by 1993 c. 34, s. 115, Sch. 13 para. 13(1)

F2 Words in s. 147(2) inserted (27.7.1993 with effect as mentioned in s. 115(5) of the amending Act) by 1993 c. 34, s. 115, Sch. 13 para. 13(2)

F3 S. 147(2A)-(2D) inserted (with effect in accordance with Sch. 16 para. 7(3) of the amending Act) by Finance Act 1997 (c. 16), Sch. 16 para. 7(1)

F4 Words in s. 147(3) inserted (with effect in accordance with Sch. 16 para. 7(3) of the amending Act) by Finance Act 1997 (c. 16), Sch. 16 para. 7(2)