Capital Allowances Act 2001 section 392

UK property businesses

Section 392 explains how capital allowances and charges are given effect for persons who are not carrying on a trade, by routing them through a UK property business.

• The section applies where a person is entitled to an allowance or liable to a charge but was not trading during the chargeable period
• If the person was running a UK property business in that period, the allowance is treated as an expense and the charge as a receipt of that business
• If the person was not running a UK property business either, they are deemed to have carried on such a business so that the allowance and charge can be given effect
• In the deemed business scenario, the allowance is likewise treated as an expense and the charge as a receipt of that notional property business