Taxation of Chargeable Gains Act 1992 Schedule 4ZZB paragraph 25

Capital allowances

Paragraph 25 of Schedule 4ZZB deals with how capital allowances interact with the computation of chargeable gains under the schedule.

• Where capital allowances have been claimed on an asset, they must be taken into account when calculating any chargeable gain or allowable loss on disposal of that asset.
• Capital allowances previously given reduce the allowable expenditure that can be deducted when computing the gain, effectively increasing the chargeable gain.
• Conversely, any balancing charges that arise on disposal are taken into account to avoid double counting of the same amount as both a balancing charge and a chargeable gain.
• This provision was introduced by the Finance Act 2019, Schedule 1, paragraph 19, and ensures consistency between the capital allowances regime and the chargeable gains rules.