INTM215280 - Controlled Foreign Companies: before CTSA

Notice of declaration: capital allowances - cases suitable for declaration

There will not be many cases where a declaration under ICTA88/SCH24/PARA11 (3) is needed. However, the Inspector should not forget that a declaration is possible. The following types of cases should be sent to CT & VAT, International CT to consider whether a declaration may be appropriate:

• The Inspector suspects that the company is making use of capital allowances to avoid the issue of a direction.
• There is an unusual amount of capital allowances for an accounting period.
• The Inspector can see that the company is getting relief for large amounts of capital expenditure more than once. It should be a case where, but for capital allowances, the Inspector thinks a direction would be appropriate.

The power to make a declaration is reserved to the Board. The Inspector should not pre-empt the Board's decision when talking or writing to the company or its agents.