Corporation Tax Act 2010 section 356NG

Capital allowances

Section 356NG prevents capital allowances arising from special leasing arrangements from being set against a contractor's ring fence profits.

• Capital allowances from special leasing of plant and machinery cannot reduce contractor's ring fence profits
• The restriction applies to allowances that would otherwise be given effect under sections 259 and 260 of the Capital Allowances Act 2001
• Sections 259 and 260 of CAA 2001 deal specifically with how capital allowances are applied in special leasing situations
• The rule ensures that ring fence profits from contracting activities are protected from deductions related to special leasing arrangements