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Capital Allowances Act 2001

▸ Part 1 – Introduction (ss 1-10)

Chapter 1 – Capital allowances: general (ss 1-6)
Chapter 1A – Trades attracting Northern Ireland rate of corporation tax (ss 6A-6E)
Chapter 2 – Exclusion of double relief (ss 7-10)

▸ Part 2 – Plant and machinery allowances (ss 11-270)

Chapter 1 – Introduction (ss 11-14)
Chapter 2 – Qualifying activities (ss 15-20)
Chapter 3 – Qualifying expenditure (ss 21-38ZA)
Chapter 3A – AIA qualifying expenditure (ss 38A-38B)
- Section 38A – AIA qualifying expenditure [CAA 2001 s 38A]
- Section 38B – General exclusions applying to section 38A [CAA 2001 s 38B]
Chapter 4 – First-year qualifying expenditure (ss 39-51)
Chapter 5 – Allowances and charges (ss 51A-66A)
Chapter 6 – Hire-purchase etc. and plant or machinery provided by lessee (ss 67-70E)
Chapter 6A – Interpretation of provisions about long funding leases (ss 70F-70YJ)
Chapter 7 – Computer software (ss 71-73)
Chapter 8 – Cars, etc. (ss 74-82)
Chapter 9 – Short-life assets (ss 83-89)
Chapter 10 – Long-life assets (ss 90-104)
Chapter 10A – Special rate expenditure (ss 104A-104G)
- Special rate expenditure (ss 104A-104B)
- Rules applying to special rate expenditure (ss 104C-104G)
Chapter 11 – Overseas leasing (ss 105-126)
Chapter 12 – Ships (ss 127-158)
Chapter 13 – Provisions affecting mining and oil industries (ss 159-171)
Chapter 14 – Fixtures (ss 172-204)
Chapter 15 – Asset provided or used only partly for qualifying activity (ss 205-208A)
Chapter 16 – Partial depreciation subsidies (ss 209-212)
Chapter 16ZA – Asset provided or used only partly for NI rate activity (ss 212ZA-212ZF)
Chapter 16A – Avoidance involving allowance buying (ss 212A-212S)
Chapter 16B – Cap on first-year allowances... (ss 212T-212U)
- Section 212T – Cap on first-year allowances: zero-emission goods vehicles [CAA 2001 s 212T]
- Section 212U – Cap on first-year allowances: expenditure on plant and machinery for use in designated assisted areas [CAA 2001 s 212U]
Chapter 17 – Other anti-avoidance (ss 213-233)
Chapter 18 – Additional VAT liabilities and rebates (ss 234-246)
Chapter 19 – Giving effect to allowances and charges (ss 247-262A)
Chapter 20 – Supplementary provisions (ss 262AA-270)

▸ Part 2A – Structures and buildings allowances (ss 270AA-270IH)

Chapter 1 – Introduction (ss 270AA-270AB)
- Section 270AA – Structures and buildings allowances [CAA 2001 s 270AA]
- Section 270AB – Date on which construction begins [CAA 2001 s 270AB]
Chapter 2 – Qualifying expenditure (ss 270BA-270BN)
Chapter 2A – Freeport qualifying expenditure (ss 270BNA-270BNC)
Chapter 3 – Qualifying use and qualifying activities (ss 270CA-270CG)
- Qualifying activities (ss 270CA-270CD)
- Qualifying use (ss 270CE-270CG)
Chapter 4 – The relevant interest in the building or structure (ss 270DA-270DE)
Chapter 5 – Calculating the allowance: supplementary provision (ss 270EA-270EC)
Chapter 6 – Highway undertakings (ss 270FA-270FC)
Chapter 7 – Additional VAT liabilities and rebates (ss 270GA-270GC)
Chapter 7A – Adjustment for pre-April 2020 allowance (s 270GD)
- Section 270GD – Adjustment for pre-April 2020 allowance [CAA 2001 s 270GD]
Chapter 8 – Giving effect to allowances (ss 270HA-270HI)
Chapter 9 – Supplementary provisions (ss 270IA-270IH)

▸ Part 3 – Industrial buildings allowances (ss 271-360)

Chapter 1 – Introduction (ss 271-273)
Chapter 2 – Industrial buildings (ss 274-295)
Chapter 3 – The relevant interest in the building (ss 286-291)
Chapter 4 – Qualifying expenditure (ss 292-304)
Chapter 5 – Initial allowances (ss 305-308)
Chapter 6 – Writing-down allowances (ss 309-313A)
Chapter 7 – Balancing adjustments (ss 314-331)
Chapter 8 – Writing off qualifying expenditure (ss 332-340)
Chapter 9 – Highway undertakings (ss 341-344)
Chapter 10 – Additional VAT liabilities and rebates (ss 345-351)
Chapter 11 – Giving effect to allowances and charges (ss 352-355)
Chapter 12 – Supplementary provisions (ss 356-360)

▸ Part 3A – Business premises renovation allowances (ss 360A-360ZA)

Chapter 1 – Introduction (ss 360)
- Section 360A – Business premises renovation allowances [CAA 2001 s 360A]
Chapter 2 – Qualifying expenditure (ss 360B-360BA)
- Section 360B – Meaning of "qualifying expenditure" [CAA 2001 s 360B]
- Section 360BA – Expenditure not treated as qualifying expenditure if delay in carrying out works etc. [CAA 2001 s 360BA]
Chapter 3 – Qualifying buildings and qualifying business premises (ss 360C-360D)
- Section 360C – Meaning of "qualifying building" [CAA 2001 s 360C]
- Section 360D – Meaning of "qualifying business premises" [CAA 2001 s 360D]
Chapter 4 – The relevant interest in the qualifying building (ss 360E-360F)
- Section 360E – General rule as to what is the relevant interest [CAA 2001 s 360E]
- Section 360F – Interest acquired on completion of conversion [CAA 2001 s 360F]
Chapter 5 – Initial Allowances (ss 360G-360H)
- Section 360G – Initial allowances [CAA 2001 s 360G]
- Section 360H – Premises not qualifying business premises or relevant interest sold before premises first used or let [CAA 2001 s 360H]
Chapter 6 – Writing-down allowances (ss 360I-360K)
Chapter 7 – Grants in respect of qualifying expenditure (ss 360L)
- Section 360L – Grants affecting entitlement to allowances [CAA 2001 s 360L]
Chapter 8 – Balancing adjustments (ss 360M-360P)
Chapter 9 – Writing off qualifying expenditure (ss 360Q-360S)
Chapter 10 – Additional VAT liabilities and rebates (ss 360T-360Y)
Chapter 11 – Supplementary provisions (ss 360Z-360Z4)

▸ Part 4 – Agricultural buildings allowances (ss 361-393)

Chapter 1 – Introduction (ss 361-363)
Chapter 2 – The relevant interest (ss 364-368)
Chapter 3 – Qualifying expenditure (ss 369-371)
Chapter 4 – Writing-down allowances (ss 372-379)
Chapter 5 – Balancing adjustments (ss 380-390)
- General (ss 380-384)
- Calculation of balancing adjustments (ss 385-390)
Chapter 6 – Supplementary provisions (ss 391-393)
- Giving effect to allowances and charges (ss 391-392)
- Meaning of “freehold interest”, “lease” etc. (ss 393)

▸ Part 4A – Flat Conversion Allowances (ss 393A-393W)

Chapter 1 – Introduction (s 393A)
- Section 393A – Flat conversion allowances [CAA 2001 s 393A]
Chapter 2 – Qualifying expenditure (s 393B)
- Section 393B – Meaning of "qualifying expenditure" [CAA 2001 s 393B]
Chapter 3 – Qualifying buildings and qualifying flats
Chapter 4 – The relevant interest in the flat (ss 393F-393G)
- Section 393F – General rule as to what is the relevant interest [CAA 2001 s 393F]
- Section 393G – Interest acquired on completion of conversion [CAA 2001 s 393G]
Chapter 5 – Initial allowances (ss 393H-393I)
- Section 393H – Initial allowances [CAA 2001 s 393H]
- Section 393I – Flat not qualifying flat or relevant interest sold before flat first let [CAA 2001 s 393I]
Chapter 6 – Writing-down allowances (ss 393J-393L)
Chapter 7 – Balancing adjustments (ss 393M-393P)
Chapter 8 – Writing off qualifying expenditure (ss 393Q-393S)
Chapter 9 – Supplementary provisions (ss 393T-393W)

▸ Part 5 – Mineral extraction allowances (ss 394-436)

Chapter 1 – Introduction (ss 394-399)
Chapter 2 – Qualifying expenditure on mineral exploration and access (ss 400-402)
Chapter 3 – Qualifying expenditure on acquiring a mineral asset (ss 403-406)
Chapter 4 – Qualifying expenditure: second-hand assets (ss 407-413)
- Assets reflecting expenditure on mineral exploration and access (ss 407-409)
- Qualifying expenditure on assets limited by reference to historic costs (ss 410-413)
Chapter 5 – Other kinds of qualifying expenditure (ss 414-416ZE)
Chapter 5A – First-year qualifying expenditure (416A-416C)
Chapter 6 – Allowances and charges (ss 416D-431D)
Chapter 7 – Supplementary provisions (ss 432-436)

▸ Part 6 – Research and development allowances (ss 437-451)

Chapter 1 – Introduction (ss 437-438)
- Section 437 – Research and development allowances [CAA 2001 s 437]
- Section 438 – Expenditure on research and development [CAA 2001 s 438]
Chapter 2 – Qualifying expenditure (ss 439-440)
Chapter 3 – Allowances and charges (ss 441-445)
Chapter 4 – Additional VAT liabilities and rebates (ss 446-449)
Chapter 5 – Supplementary provisions (ss 450-451)
- Section 450 – Giving effect to allowances and charges [CAA 2001 s 450]
- Section 451 – Sales: time of cessation of ownership [CAA 2001 s 451]

▸ Part 7 – Know-how allowances (ss 452-463)

Chapter 1 – Introduction (ss 452-453)
- Section 452 – Know-how allowances [CAA 2001 s 452]
- Section 453 – Know-how as property [CAA 2001 s 453]
Chapter 2 – Qualifying expenditure (ss 454-455)
- Section 454 – Qualifying expenditure [CAA 2001 s 454]
- Section 455 – Excluded expenditure [CAA 2001 s 455]
Chapter 3 – Allowances and charges (ss 456-463)

▸ Part 8 – Patent allowances (ss 464-483)

Chapter 1 – Introduction (ss 464-466)
Chapter 2 – Qualifying expenditure (ss 467-469)
Chapter 3 – Allowances and charges (ss 470-477A)
Chapter 4 – Giving effect to allowances and charges (ss 478-480)
Chapter 5 – Supplementary provisions (ss 481-483)

▸ Part 9 – Dredging allowances (ss 484-489)

Qualifying expenditure on dredging, etc. (ss 484-486)
Writing-down and balancing allowances (ss 487-488)
- Section 487 – Writing-down allowances [CAA 2001 s 487]
- Section 488 – Balancing allowances [CAA 2001 s 488]
Writing-down and balancing allowances (ss 489)
- Section 489 – Giving effect to allowances [CAA 2001 s 489]

▸ Part 10 – Assured tenancy allowances (ss 490-531)

Chapter 1 – Introduction (ss 490-493)
Chapter 2 – The relevant interest (ss 494-500)
Chapter 3 – Qualifying expenditure (ss 501-503)
Chapter 4 – Qualifying dwelling-houses (ss 504-506)
Chapter 5 – Writing-down allowances (ss 507-512)
- Entitlement to and calculation of writing-down allowances (ss 507-510)
- Interpretation (ss 511-512)
Chapter 6 – Balancing adjustments (ss 513-522)
Chapter 7 – Writing off qualifying expenditure attributable to dwelling-house (ss 523-528)
Chapter 8 – Supplementary provisions (ss 529-531)

▸ Part 11 – Contributions (ss 532-543)

Chapter 1 – Exclusion of expenditure met by contributions (ss 532-536)
- Rules excluding contributions (ss 532-533)
- Exceptions to the general rule excluding contributions (ss 534-536)
Chapter 2 – Contribution allowances (ss 537-543)

Schedule A1 First-year Tax Credits
Schedule 1 Abbreviations and defined expressions
- Part 1 – Abbreviations [CAA 2001 Sch 1 Part 1]
- Part 2 – Defined Expressions [CAA 2001 Sch 1 Part 2]
Schedule 2 Consequential Amendments
- Schedule 2 Consequential Amendments
Schedule 3 Transitionals and Savings
Schedule 4 Repeals
- Schedule 4 Repeals [CAA 2001 Sch 4]

Schedules

Schedules

Contents

Schedule A1 First-year Tax Credits 4 sections
Schedule 1 Abbreviations and defined expressions 2 sections
Schedule 2 Consequential Amendments 1 section
Schedule 3 Transitionals and Savings 76 sections
Schedule 4 Repeals 1 section

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