Capital Allowances Act 2001 section 6

Meaning of "chargeable period"

Section 6 defines what counts as a "chargeable period" and a "period of account" for capital allowances purposes, including rules for dealing with overlapping, gapped or excessively long periods.

• For income tax, the chargeable period is the period of account; for corporation tax, it is the company's accounting period
• A period of account is the period for which a trade, profession or vocation draws up its accounts, or the tax year for anyone else
• Where periods of account overlap, are nested within each other, or have gaps between them, special rules assign the common or gap period to the earlier period only
• Any period of account exceeding 18 months must be split into consecutive periods of no more than 12 months each, starting from the original start date