Capital Allowances Act 2001 section 529

Giving effect to allowances and charges

Section 529 explains how capital allowances and balancing charges are given effect for tax purposes where a person has a UK property business, or is treated as having one.

• Capital allowances are treated as an expense of the UK property business, reducing taxable profits
• Balancing charges are treated as a receipt of the UK property business, increasing taxable profits
• Where the person was carrying on a UK property business during the chargeable period, the allowance or charge is simply included in calculating that business's profits
• Where the person was not carrying on a UK property business during the chargeable period, they are treated as if they had been, so that the allowance or charge can still be given effect