Capital Allowances Act 2001 section 250

Overseas property businesses

Section 250 explains how capital allowances and charges are given effect for a person carrying on an overseas property business.

• Where the qualifying activity is an overseas property business, any capital allowance or charge must be reflected in the profit calculation for that business.
• A capital allowance is treated as an expense of the overseas property business, reducing its taxable profits.
• A balancing charge is treated as a receipt of the overseas property business, increasing its taxable profits.
• This mirrors the approach used for UK trades, UK property businesses, professions and vocations, ensuring consistent treatment across different qualifying activities.