Capital Allowances Act 2001 section 131

Effect of postponement

Section 131 explains what happens when a person has chosen to postpone a first-year allowance or writing-down allowance, including how the postponed amount is treated in calculations and how it can be claimed in later periods.

• A postponed allowance is withheld or withdrawn to the extent postponed, but the calculation of available qualifying expenditure proceeds as though the full allowance had been given without postponement.
• The person can claim all or part of a postponed allowance as a first-year or writing-down allowance in one or more later chargeable periods, provided they are still carrying on the qualifying activity, up to but not exceeding the total amount originally postponed.
• A previously postponed writing-down allowance, when later claimed, does not affect the calculation of unrelieved qualifying expenditure and does not reduce any other writing-down allowance to which the person is entitled for that later period.
• A postponed allowance that has not yet been claimed is not treated as an amount brought forward from an earlier period for group relief purposes under section 101(3) of the Corporation Tax Act 2010.