Corporation Tax Act 2010 section 356JN

When capital expenditure is incurred

Section 356JN establishes the rules for determining when capital expenditure is treated as incurred for the purposes of the supplementary charge cluster area allowance, and allows regulations to specify timing rules for investment expenditure.

• The timing rules for capital expenditure follow those set out in section 5 of the Capital Allowances Act 2001.
• These rules apply to the cluster area allowance provisions in the same way as they apply to capital allowances generally.
• Regulations made under section 356JE(1)(b) may extend the definition of investment expenditure and, where they do so, may also specify when that expenditure is treated as incurred.
• This ensures a consistent and clear basis for determining the point at which qualifying expenditure is recognised for allowance purposes.