B3.103 Capital allowances―meaning of capital expenditure and capital sums
Capital allowances are given in respect of capital expenditure which meets the requirements of a particular allowance code to be qualifying expenditure. The capital allowances legislation also refers to capital sums received on disposal etc. of an asset. For the purpose of the legislation, capital expenditure and capital sums do not include the following1:
(a) In relation to a person incurring the expenditure or paying the sum, any cash basis expenditure (see B2.112, B2.304 and B6.202B) other than that incurred on a car, any expenditure which may be deducted in computing the profits of a trade, profession, vocation or property business carried on by him, or allowed as a deduction in computing his taxable earnings from an employment or office2.
(b) In relation to the recipient of the expenditure or sums, any amounts that are to be added in computing the profits of a trade, profession, vocation or property business or
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