Capital Allowances Act 2001 section 391

Trades

Section 391 explains how agricultural buildings allowances and charges are given effect for a person carrying on a trade.

• Allowances and charges under this Part are reflected in the calculation of trade profits
• An allowance is treated as an expense of the trade, reducing taxable profits
• A charge is treated as a receipt of the trade, increasing taxable profits
• This ensures that agricultural buildings allowances flow through the normal trade profit computation