CTM02350 - Corporation Tax: capital allowances

CAA01/S2

Capital allowances are to be given effect in calculating profits for a chargeable period.

In the tax computation, any capital allowances (including balancing allowances) should be deducted and any balancing charges should be added in to arrive at the taxable profits.

See CAA01/S247 to CAA01/S261 for the specific rules on how to give effect to the allowances and charges for the various different types of business, such as a trade, an investment business or a Schedule A business.

See CA11140 for guidance on the form of claims to capital allowances by companies.