CA16000 General: Prevention of double allowances

CAA01/S7

Sometimes expenditure can qualify for more than one type of capital allowance. For example, capital expenditure on the central heating system in an office block in an enterprise zone incurred within the life of the zone can qualify for enterprise zone allowances or PMAs.

Section 7 stops expenditure qualifying for more than one type of capital allowance. It says that where any type of allowance has been made to a person in respect of capital expenditure, no other type of allowance is made to the person in respect of that capital expenditure or the provision of any asset to which that expenditure related.

If it is possible for expenditure to qualify for more than one type of capital allowances the taxpayer can choose which allowance to claim. Once a choice has been made to claim one type of allowance the taxpayer cannot change to another in later years.