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HMRC internal manual

Capital Allowances Manual

From
HM Revenue & Customs
Updated
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ABA: how allowances and charges are made

Agricultural buildings allowance was phased out by FA2008.

A person gets

  • 75% of the allowance for the financial year beginning 1 April 2008 / tax year 2008/09
  • 50% of the allowance for the financial year beginning 1 April 2009 / tax year 2009/10
  • 25% of the allowance for the financial year beginning 1 April 2010 / tax year 2010/11

There is no ABA for the financial year beginning 1 April 2011 / tax year 2011/12 onwards.

CAA01/S391 - S392

Where a person carries on a trade, treat allowances as expenses of that trade and charges as trade receipts.

If the person is not carrying on a trade but is carrying on a UK property business treat allowances as expenses of the business and charges as receipts.

If there is no trade or property business, assume that the person is carrying on a Schedule A business and treat allowances as expenses and charges as receipts of that assumed business.