Capital Allowances Act 2001 section 355

Buildings for miners etc: carry-back of balancing allowances

Section 355 allows balancing allowances on buildings constructed for mine workers or their welfare to be carried back to earlier chargeable periods when the mineral source ceases to be worked or a foreign concession ends, and there are insufficient profits in the final period to absorb the allowance.

• Where a mining trade ends and a balancing allowance arises on a workers' building but cannot be fully used due to insufficient profits, the unused balance may be carried back to preceding chargeable periods
• The carry-back is limited to chargeable periods totalling no more than five years, including any periods where an allowance could have been made but profits were insufficient to give it effect
• For companies, the carry-back cannot be used to create or increase a loss in any accounting period
• Where a company also claims trading loss relief under section 37 of the Corporation Tax Act 2010, that relief takes priority and is given effect first, with the section 355 allowance being disregarded for the purposes of the trading loss claim