Commentary

B3.101 Capital allowances—overview

Business tax
Business tax | Commentary

B3.101 Capital allowances—overview

Business tax | Commentary

Part B3     Capital allowances

Contents of Part B3

B3.1     General provisions

B3.2     Structures and buildings

B3.3     Plant and machinery

B3.4     Mineral extraction

[B3.5]     [Deleted—Agricultural buildings]

B3.6     Patent rights and know-how

B3.7     Research and development

B3.8     Dredging

B3.9     Assured tenancies

B3.10     Flat conversions

B3.11     Business premises renovation

Division B3.1     General provisions

For updates affecting this Division please see Part B0 Updates

Capital allowances

B3.101 Capital allowances—overview

[For additional key resources on this topic see 'Capital allowances—related content' below.]

In calculating the profits of a trade, profession, vocation or property business no deduction can be made for expenditure of a capital nature1. The distinction between revenue and capital expenditure is discussed at length in B2.304–B2.309, but in general expenditure on the provision of a fixed asset will be of a capital nature and will not be allowed as a deduction. The same principle applies to

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