Capital Allowances Act 2001 section 50

Time when expenditure is incurred

Section 50 deals with how to determine the timing of expenditure when deciding whether it qualifies as first-year qualifying expenditure.

• When assessing whether expenditure qualifies for first-year allowances, you must look at when the expenditure was actually incurred
• The special timing rule in section 12, which can re-allocate expenditure to a different period, must be ignored for this purpose
• Section 12 normally treats certain pre-trading expenditure as incurred on the first day the qualifying activity is carried on, but this deemed timing is disregarded here
• The actual date of expenditure is what matters when testing eligibility for first-year qualifying expenditure under this Chapter