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Section 2 General means of giving effect to capital allowances

United Kingdom

(1)

Allowances and charges are to be given effect—

(a)

for income tax purposes, in calculating income for a chargeable period, and

(b)

for corporation tax purposes, in calculating profits for a chargeable period.

(2)

For the meaning of “chargeable period”, see section 6.

(3)

Subsection (1) needs to be read with the following provisions about giving effect to allowances and charges—

  • sections 247 to F1262 (plant and machinery allowances);

  • F2sections 270HA to 270HI (structures and buildings allowances);

  • F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F4sections 360Z and 360Z1 (business premises renovation allowances)

  • F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • section 432 (mineral extraction allowances);

  • section 450 (research and development allowances);

  • section 463 (know-how allowances);

  • sections 478 to 480 (patent allowances);

  • section 489 (dredging allowances);

  • section 529 (assured tenancy allowances).

(4)

In subsection (1)(b) “profits” has the same meaning as in F7Part 2 of CTA 2009 (see section 2(2) of that Act).

Annotations

Textual amendments

F1

Word in s. 2(3) substituted (with effect in accordance with s. 33(5) of the amending Act) by Finance Act 2019 (c. 1), s. 33(2)(b)(i)

F2

Words in s. 2(3) inserted (5.7.2019) by The Capital Allowances (Structures and Buildings Allowances) Regulations 2019 (S.I. 2019/1087), regs. 1, 3(3)

F3

Words in s. 2(3) omitted (with effect in accordance with Sch. 27 para. 30(1) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 27 para. 3(a)

F4

Words in s. 2(3) inserted (with effect in accordance with s. 92 of the amending Act) by Finance Act 2005 (c. 7), Sch. 6 para. 3; S.I. 2007/949, art. 2

F5

Words in s. 2(3) omitted (with effect in accordance with Sch. 27 para. 30(1) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 27 para. 3(b)

F6

S. 2(3) entry omitted (with effect in accordance with Sch. 39 para. 40 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 39 para. 38(3) (with Sch. 39 paras. 41, 42)

F7

Words in s. 2(4) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 475 (with Sch. 2 Pts. 1, 2)