COM53010 - Claims / reliefs: other reliefs: capital allowances - claims

Claims to capital allowances for a CTSA AP must be included in a company’s CT600 tax return (Paragraph 79 Schedule 18 FA 1998). If a company has already submitted its return for an AP, it may make capital allowances claims by amending its return.

Schedule 1A TMA 1970 (claims or elections that cannot be dealt with by inclusion in a return either as first made or by amendment) therefore does not apply to capital allowances claims.

Every capital allowances claim must specify the amount of relief claimed which must be ‘quantified’ at the time the claim is made (Paragraph 80). Quantified just means that the claim must be expressed in figures as opposed to a formula.

Once made, capital allowances claims may only be amended or withdrawn by amending the company tax return (Paragraph 81).

The general principle is that capital allowances claims may be made, amended or withdrawn up to the first anniversary of the filing date (Word 42KB) for the return. That will not be earlier than two years after the end of the claimant company’s AP. However, where HMRC enquires into a company tax return, the time limit is extended, so that claims may be made, amended or withdrawn up to 30 days after the enquiry is completed (Paragraph 82).

If the effect of making a capital allowances claim is to reduce the amount of capital allowances available in another AP for which the company has already made its return, the company must amend its return, under Paragraph 83(2), within 30 days.

If the company does not make the necessary amendments within 30 days, HMRC can, under Paragraph 83(3), amend the company’s return. HMRC must give the company written notice of the amendment.

Paragraph 83(4) extends the time limits which otherwise apply to the amendment of a company tax return, so that an amendment made under Paragraph 83(2) or (3) will not be out of time. The company may appeal against an amendment.

See the Corporation Tax (CT) Manual at CT10800 and following, for the detailed legal background to capital allowances claims.

For a list of forms relevant to this subject, see COM53011.

For a list of functions to use in particular situations, see COM53012.

For legislation applying to this subject, see COM53013.