Capital Allowances Act 2001 section 251

Professions and vocations

Section 251 explains how plant and machinery capital allowances and charges are given effect for individuals carrying on a profession or vocation.

• Where a person's qualifying activity is a profession or vocation, capital allowances and charges feed directly into the profit or loss calculation for that activity.
• An allowance is treated as a deductible expense, reducing the taxable profits of the profession or vocation.
• A charge (a balancing charge) is treated as a taxable receipt, increasing the profits of the profession or vocation.
• This mirrors the treatment already familiar for trades and property businesses, ensuring consistency across all qualifying activities.