Income Tax (Trading and Other Income) Act 2005 section 825

Unallocated capital expenditure

Section 825 deals with what happens to care business capital expenditure that has not yet been allocated to a capital allowances pool when a new relevant chargeable period begins.

• The section applies where, at the start of a relevant chargeable period, a care business individual has capital expenditure that has not been placed into a care business pool, provided the previous period was not itself a relevant chargeable period.
• If the individual is entitled under the Capital Allowances Act 2001 to allocate that expenditure (or part of it) to a care business pool for the period, the legislation treats it as automatically allocated.
• The deemed allocation is to the appropriate kind of care business pool, as defined by section 54 of the Capital Allowances Act 2001, regardless of whether the individual has actually made the allocation.
• This automatic treatment ensures that eligible capital expenditure is not lost or overlooked simply because it was not formally assigned to a pool during a period when the care business rules were not in play.