Capital Allowances Act 2001 section 489

Giving effect to allowances

Section 489 explains how dredging allowances are given effect by treating them as trading expenses when calculating profits.

• Dredging allowances under this Part are given effect in the calculation of trade profits
• The allowance is treated as an expense of the trade for profit calculation purposes
• This is a straightforward mechanism that reduces taxable trading profits by the amount of the allowance
• A special rule in section 6E applies where the trade involves Northern Ireland rate activity