GIM4090 - Taxation of general insurance: annual accounting: capital allowances

If a general insurance company incurs capital expenditure on the provision of plant & machinery, either chattels or fixtures in a building, for use in managing its business, it can claim capital allowances in the same way as any other trader. Expenditure on plant & machinery in buildings held by it as assets backing its insurance business cannot be relieved by giving capital allowances, as it does not fall to be treated as capital expenditure (CAA01/S4 (2)(a)).