Capital Allowances Act 2001 section 247

Trades

Section 247 explains how capital allowances and charges are given effect when the qualifying activity is a trade.

  • Capital allowances relating to a trade are treated as an expense of the trade when calculating trading profits
  • Balancing charges relating to a trade are treated as a receipt of the trade when calculating trading profits
  • Special rules apply where activities qualify for the Northern Ireland corporation tax rate
  • Separate provisions may restrict how allowances can be used as trade expenses in certain circumstances

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