Capital Allowances Act 2001 section 270HE

Companies with investment business

Section 270HE explains how structures and buildings allowances are given effect where the qualifying activity is managing the investments of a company with investment business.

• Where the qualifying activity is investment management, the allowance is first deducted from any income of the business for the period, with any excess treated as management expenses under corporation tax rules
• Apart from this special deduction mechanism, the corporation tax rules apply to the allowance as though it were being given effect in calculating trading profits
• Allowances for the same building or structure cannot be claimed both under this section and in any other way, preventing duplication of relief
• The qualifying expenditure can only be relieved through structures and buildings allowances under this Part or, for any excess, through the management expenses provisions — it cannot be deducted under any other route