Commentary

B3.380 Method of making plant and machinery allowances and charges

Business tax
Business tax | Commentary

B3.380 Method of making plant and machinery allowances and charges

Business tax | Commentary

Giving effect to plant and machinery allowances and charges

B3.380 Method of making plant and machinery allowances and charges

Generally, any allowance or charge to which a person is entitled or liable is given effect in calculating the profits of the qualifying activity, by treating an allowance as an expense of the activity and a charge as a receipt of the activity1. This applies to trades, professions and vocations, property businesses, furnished holiday lettings businesses and mining etc concerns within ITTOIA 2005, s 12(4) or CTA 2009, s 39(4). Different rules apply for other types of qualifying activity.

See CA29300 onwards.

Companies with investment business

There are special rules governing capital allowances on plant or machinery used in the management of the business of a company with investment

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