Commentary

D7.570 Apportionment of allowances and charges on management assets

Corporate tax
Corporate tax | Commentary

D7.570 Apportionment of allowances and charges on management assets

Corporate tax | Commentary

D7.570 Apportionment of allowances and charges on management assets

The rules in this division apply for accounting periods beginning before 1 January 2013. For accounting periods beginning on or after 1 January 2013 see Division D7.4.

Capital allowances and balancing charges on management assets are apportioned between the different categories of business carried on by the company using a fraction calculated by reference to company's liabilities alone without any reference to assets using the formula—

where:

  1.  

         A is the amount of allowance or charge;

  2.  

         B is the mean of the opening and closing liabilities of the category of business

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