Capital Allowances Act 2001 section 455

Excluded expenditure

Section 455 identifies the circumstances in which expenditure on acquiring know-how does not qualify for capital allowances.

• Expenditure already deducted elsewhere for tax purposes cannot also qualify for know-how capital allowances
• Expenditure is excluded where the buyer and seller are under common control, including where one controls the other or a third party controls both
• The definition of "body of persons" for the common control test includes partnerships as well as companies
• Expenditure treated as a payment for goodwill under the trade disposal rules in ITTOIA 2005 or CTA 2009 is excluded from qualifying expenditure