Capital Allowances Act 2001 section 467

Qualifying expenditure

Section 467 introduces the two categories into which expenditure must fall in order to qualify for capital allowances on research and development.

• Expenditure must be either qualifying trade expenditure or qualifying non-trade expenditure to attract capital allowances
• These are the only two categories of qualifying expenditure recognised under this part of the legislation
• The distinction between the two types determines how allowances and charges are given effect
• The detailed rules for each type, and how they flow through to allowances and charges, are set out in subsequent sections