Capital Allowances Act 2001 section 432

Giving effect to allowances and charges

Section 432 explains how capital allowances and charges arising under Part 5 (mineral extraction) are reflected in the calculation of trading profits.

• Allowances under Part 5 are treated as deductible expenses of the mineral extraction trade
• Charges under Part 5 are treated as taxable receipts of the mineral extraction trade
• Both allowances and charges feed directly into the profit calculation for the relevant chargeable period
• Special rules apply where the trade involves Northern Ireland rate activities