Capital Allowances Act 2001

[F1 393T Giving effect to allowances and charges U.K.

(1) This section applies if a person is entitled or liable under this Part to an allowance or charge for a chargeable period.

(2) If the person’s interest in the flat is an asset of [F2 a UK property business, or a Schedule A business, ] carried on by him at any time in that period, the allowance or charge is to be given effect in calculating the profits of that business for that period, by treating—

(a) the allowance as an expense of that business, and

(b) the charge as a receipt of that business.

[F3 (2A) If the person is within the charge to income tax in respect of the allowance or charge and his interest in the flat is not an asset of a UK property business carried on by him at any time in that period, the allowance or charge is to be given effect by treating him as if he had been carrying on a UK property business in that period and as if—

(a) the allowance were an expense of that business, and

(b) the charge were a receipt of that business.]

(3) If [F4 the person is a company within the charge to corporation tax in respect of the allowance or charge and its] interest in the flat is not an asset of a Schedule A business carried on by [F5 the company] at any time in that period, the allowance or charge is to be given effect by treating [F5 the company] as if [F6 it] had been carrying on a Schedule A business in that period and as if—

(a) the allowance were an expense of that business, and

(b) the charge were a receipt of that business.]

Textual Amendments

F1 Pt. 4A (ss. 393A-393W) inserted (with effect as mentioned in s. 67 of the amending Act) by Finance Act 2001 (c. 9), s. 67, Sch. 19 Pt. 1

F2 Words in s. 393T(2) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 560(2) (with Sch. 2)

F3 S. 393T(2A) inserted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 560(3) (with Sch. 2)

F4 Words in s. 393T(3) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 560(4)(a) (with Sch. 2)

F5 Words in s. 393T(3) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 560(4)(b) (with Sch. 2)

F6 Word in s. 393T(3) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 560(4)(c) (with Sch. 2)