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HMRC internal manual

Employment Income Manual

Deductions from earnings: capital allowances: procedures: how capital allowances are given and how balancing charges are taxed

Section 262 CAA2001 and Section 7(5) ITEPA 2003

Capital allowancesCapital allowances are given as a deduction from earnings, in the same way as expenses under Section 336 ITEPA 2003. If the allowances due exceed the emoluments, see

### Balancing chargesBalancing charges relating to employees and office holders are chargeable to tax as earnings from the employment or office.