SE36890 - Deductions from emoluments: capital allowances: procedures: set-off of excess capital allowances against other income

Section 262 CAA 2001 and Section 380(1) ICTA 1988

If the deductions allowable under the Schedule E expenses rule in Section 198(1) ICTA 1988 exceed the emoluments from the employment, no deduction for the excess can be given against other income (see SE31655).

But if all or part of any capital allowances due cannot be set off against the emoluments from the employment, an election can be made for some or all of the excess to be set off against other income.

Such claims will be very exceptional and must be referred to an Inspector.