Commentary

A1.127 Reliefs for capital expenditure

Administration and compliance

A1.127 Reliefs for capital expenditure

A1.127 Reliefs for capital expenditure

Charges for depreciation are not deductible in computing trading profits, but various reliefs in the form of capital allowances under CAA 2001 are allowed for capital expenditure on a wide range of assets. Such allowances may fall to be made to a person as a deduction from his trading income, income from a property business or in certain circumstances, from an employee's employment income1.

Until April 2011 writing-down allowances (and, where applicable, initial allowances2) were available on the construction of industrial buildings, which are defined in great detail, and on qualifying hotels. Otherwise, no reliefs were

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