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HMRC internal manual

Corporate Intangibles Research and Development Manual

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Core computational rules: accounting: entries from which deductible debits derived: exclusion of expenditure on tangible assets

CTA09/PART8/S727 (2), (3)

Sometimes capital expenditure on a tangible asset may arguably have been incurred for one of the purposes set out in CIRD12250. For example, a company may incur expenditure acquiring motor vehicles used by staff of the department responsible for promoting the company’s brand names. Such capital expenditure is specifically excluded from Part 8 by section 727 (2).

Section 727 (3) provides that the term, ‘capital expenditure’ in section 727 (2) is defined by reference to CAA01. In essence that is expenditure that is not a revenue deduction - see CA11530.