| Commentary

20.2 Capital allowances

| Commentary

20.2 Capital allowances

A company is entitled to claim capital allowances1 in the same way as a sole trader or a partner. For corporation tax purposes, allowances and charges are given effect in calculating profits for a chargeable period2. In relation to qualifying plant and machinery, any capital allowance is treated as an expense of the trade, whilst a balancing charge is treated as a receipt of the trade3. In most cases, as with a sole trader or partner, a company will not receive any capital allowance unless it makes a claim for it in its company tax return4.

Thus, in

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