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HMRC internal manual

Capital Allowances Manual

From
HM Revenue & Customs
Updated
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Dredging: How allowances are made

CAA01/S489

Dredging allowances are made in calculating the profits of the trade. This means that for income tax a dredging allowance is treated as a business expense and is deducted from the trading profits to calculate the taxable profits. For corporation tax a dredging allowance is treated as a trading expense.