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HMRC internal manual

Company Taxation Manual

Corporation Tax: capital allowances


Capital allowances are to be given effect in calculating profits for a chargeable period.

In the tax computation, any capital allowances (including balancing allowances) are deducted and any balancing charges are added in to arrive at the taxable profits.

See CAA01/S247 to CAA01/S261 for the specific rules on how to give effect to the allowances and charges for the various different types of business, such as a trade, an investment business or a property business.

See CA11140 for guidance on the form of claims to capital allowances by companies.