Capital Allowances Act 2001 section 253

Companies with investment business

Section 253 explains how plant and machinery capital allowances and balancing charges are given effect for companies whose qualifying activity is managing an investment business.

• Capital allowances must first be set against any income of the investment business for the period, with any excess added to the company's expenses of management
• Balancing charges are treated as income of the investment business
• Duplicate allowances or charges for the same plant or machinery cannot be claimed both under this section and in another way
• Capital expenditure covered by this section cannot be relieved outside the capital allowances regime, except through the expenses of management or flood and coastal erosion project contribution rules