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HMRC internal manual

COTAX Manual

From
HM Revenue & Customs
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Claims / reliefs: other reliefs: capital allowances - claims

Claims to capital allowances must be included in a company’s CT600 tax return. If a company has already submitted its return for an AP, it may make capital allowances claims by amending its return.

Schedule 1A TMA 1970 (claims or elections that cannot be dealt with by inclusion in a return either as first made or by amendment) therefore does not apply to capital allowances claims.

Every capital allowances claim must specify the amount of relief claimed which must be ‘quantified’ at the time the claim is made. Quantified just means that the claim must be expressed in figures as opposed to a formula.

Once made, capital allowances claims may only be amended or withdrawn by amending the company tax return.

The general principle is that capital allowances claims may be made, amended or withdrawn up to the first anniversary of the filing date (Word 42KB) for the return. That will not be earlier than two years after the end of the claimant company’s AP. However, where HMRC enquires into a company tax return, the time limit is extended, so that claims may be made, amended or withdrawn up to 30 days after the enquiry is completed.

If the effect of making a capital allowances claim is to reduce the amount of capital allowances available in another AP for which the company has already made its return, the company must amend its return within 30 days.

If the company does not make the necessary amendments within 30 days, HMRC can amend the company’s return. HMRC must give the company written notice of the amendment.

Legislation extends the time limits which otherwise apply to the amendment of a company tax return, so that an amendment will not be out of time. The company may appeal against an amendment.

See the Company Taxation Manual at CTM98005 and following, for the detailed legal background to capital allowances claims.

See:

  • COM53011 for a list of forms relevant to this subject
  • COM53012 for a list of functions to use in particular situations
  • COM53013 for legislation applying to this subject.