Capital Allowances Act 2001 section 6E

Giving effect to allowances and charges: NI rate activity cases

Section 6E explains how capital allowances and balancing charges are treated when calculating the trading profits of companies and partnerships that qualify for Northern Ireland rate corporation tax.

• Applies to SME (Northern Ireland employer) companies, NIRE companies, and Northern Ireland firms entitled to allowances or charges under specified parts of the Capital Allowances Act
• Allowances are treated as expenses of the trade and charges as receipts of the trade when calculating trading profits
• Allowances and charges relating to NI rate activities form part of Northern Ireland profits or losses, taxable at the Northern Ireland rate
• Allowances and charges relating to main rate activities form part of mainstream profits or losses, taxable at the standard corporation tax rate