Corporation Tax Act 2010 section 356JA

When capital expenditure is incurred

Section 356JA establishes when capital expenditure is treated as being incurred for the purposes of the carried-forward trade losses provisions in Chapter 8, by importing the rules from the Capital Allowances Act 2001.

• The timing rules for capital expenditure follow those set out in section 5 of the Capital Allowances Act 2001.
• These rules determine the precise point at which capital expenditure is recognised as having been incurred.
• The same principles that govern timing of expenditure for capital allowances purposes apply equally to Chapter 8 of this Act.
• This ensures consistency between the capital allowances regime and the corporation tax provisions in this chapter.