Capital Allowances Act 2001

2 General means of giving effect to capital allowances U.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);

• [F1 sections 360Z and 360Z1 (business premises renovation allowances)]

• sections 391 and 392 (agricultural buildings allowances);

• [F2 section 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

F1 Words 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

F2 S. 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