Capital Allowances Act 1990

1. Introductory Text

2. Part I Industrial Buildings and Structures

   1. Chapter I Initial Allowances

      1. 1. Buildings and structures in enterprise zones.

      2. 2. Transitional relief for regional projects.

   2. Chapter II Writing-down Allowances, Balancing Allowances and Balancing Charges

      1. 3. Writing-down allowances.

      2. 4. Balancing allowances and balancing charges.

      3. 5. Restriction of balancing allowances on sale of industrial buildings or structures.

      4. 6. Buildings and structures (including hotels) in enterprise zones.

      5. 7. Other hotels.

   3. Chapter III Provisions Supplementary to Chapters I and II

      1. 8. Writing off of expenditure and meaning of “residue of expenditure”.

      2. 9. Manner of making allowances and charges.

      3. 10. Purchases of buildings and structures.

      4. 11. Long leases.

      5. 12. Expenditure on repair of buildings.

      6. 13. Expenditure on sites for machinery and plant.

      7. 14. Sports pavilions.

      8. 15. Temporary disuse of industrial buildings or structures.

      9. 16. Requisitioned land, holding over of leased land and other special cases.

      10. 17. Mining structures etc: balancing allowances carried back to earlier chargeable periods.

      11. 18. Definition of “industrial building or structure”.

      12. 19. Meaning of “qualifying hotel”.

      13. 20. Meaning of “the relevant interest”.

      14. 21. Other interpretation of Part I.

3. Part II Machinery and Plant

   1. Chapter I Allowances and Charges: General Provisions

      1. 22. First-year allowances: transitional relief for regional projects.

      2. 23. Information relating to first-year allowances.

      3. 24. Writing-down allowances and balancing adjustments.

      4. 25. Qualifying expenditure.

      5. 26. The disposal value.

      6. 27. Professions, employments, vocations etc.

      7. 28. Investment companies and life assurance companies.

      8. 29. Furnished holiday lettings.

   2. Chapter II Ships

      1. 30. First-year allowances.

      2. 31. Writing-down allowances.

      3. 32. Ships not used in the actual trade.

      4. 33. Exclusion of section 31.

   3. Chapter III Expensive Motor Cars

      1. 34. Writing-down allowances etc.

      2. 35. Contributions to expenditure, and hiring of cars.

      3. 36. Definition of “motor car”, etc.

   4. Chapter IV Short-Life Assets

      1. 37. Election for certain machinery or plant to be treated as short-life assets.

      2. 38. Assets which cannot be treated as short-life assets.

   5. Chapter V Leased Assets and Inexpensive Cars

      1. 39. Meaning of “qualifying purpose”.

      2. 40. Meaning of “short-term leasing” and “the requisite period”.

      3. 41. Writing-down allowances etc. for leased assets and inexpensive cars.

      4. 42. Assets leased outside the United Kingdom.

      5. 43. Joint lessees: new expenditure.

      6. 44. Further provisions relating to joint lessees in cases involving new expenditure.

      7. 45. Joint lessees: old expenditure.

      8. 46. Recovery of excess relief: new expenditure.

      9. 47. Recovery of excess relief: old expenditure.

      10. 48. Information relating to allowances made in respect of new expenditure.

      11. 49. Information relating to allowances made in respect of old expenditure.

      12. 50. Interpretation of Chapter V.

   6. Chapter VI Fixtures

      1. 51. Application and interpretation of Chapter VI.

      2. 52. Expenditure incurred by holder of interest in land.

      3. 53. Expenditure incurred by equipment lessor.

      4. 54. Expenditure included in consideration for acquisition of existing interest in land.

      5. 55. Expenditure incurred by incoming lessee: transfer of allowances.

      6. 56. Expenditure incurred by incoming lessee: lessor not entitled to allowances.

      7. 57. Fixtures treated as ceasing to belong to particular persons.

      8. 58. Equipment lessors: special provisions.

      9. 59. Disposal value of fixtures in certain cases.

   7. Chapter VII Miscellaneous Expenditure

      1. 60. Machinery and plant on hire-purchase etc.

      2. 61. Machinery and plant on lease.

      3. 62. Treatment of demolition costs.

      4. 63. Mineral extraction.

      5. 64. Transfers of interests in oil fields.

      6. 65. Partnership using property of a partner.

      7. 66. Building alterations connected with installation of machinery or plant.

      8. 67. Expenditure on thermal insulation.

      9. 68. Exclusion of certain expenditure relating to films, tapes and discs.

      10. 69. Expenditure on fire safety.

      11. 70. Expenditure on safety at sports grounds.

      12. 71. Security.

      13. 72. Security: supplementary.

   8. Chapter VIII Supplementary Provisions

      1. 73. Manner of making allowances and charges.

      2. 74. Allowances not available: expenses of Members of Parliament.

      3. 75. Further restrictions on allowances.

      4. 76. Extension of section 75.

      5. 77. Successions to trades: connected persons.

      6. 78. Succession to trades where no election made under section 77.

      7. 79. Effect of use partly for trade etc. and partly for other purposes.

      8. 80. Effect of subsidies towards wear and tear.

      9. 81. Effect of use after user not attracting capital allowances, or after receipt by way of gift.

      10. 82. Capital expenditure to which this Part does not apply.

      11. 83. Other interpretative provisions.

4. Part III Dwelling-houses Let on Assured Tenancies

   1. 84. Application of Part III.

   2. 85. Writing-down allowances.

   3. 86. Qualifying dwelling-houses.

   4. 87. Balancing allowances and charges and withdrawal of initial allowances in certain cases.

   5. 88. Dwelling-houses not continuously qualifying dwelling-houses.

   6. 89. Supplementary provisions where dwelling-house ceases to be a qualifying dwelling-house.

   7. 90. Writing off of expenditure and meaning of “residue of expenditure”.

   8. 91. Buildings bought unused.

   9. 92. Manner of making allowances and charges.

   10. 93. Repairs, and double allowances.

   11. 94. Holding over by lessees, etc.

   12. 95. The relevant interest.

   13. 96. The appropriate capital expenditure.

   14. 97. Interpretation.

5. Part IV Mineral Extraction

   1. Chapter I Allowances and Charges

      1. 98. Writing-down and balancing allowances.

      2. 99. Disposal receipts.

      3. 100. Balancing charges: excess of allowances etc. over expenditure.

      4. 101. Occasions of balancing allowances.

      5. 102. Treatment of qualifying expenditure on mineral exploration and access.

      6. 103. Demolition costs.

      7. 104. Manner of making allowances and charges.

   2. Chapter II Qualifying Expenditure

      1. 105. General provisions.

      2. 106. Pre-trading expenditure on machinery or plant which is sold etc.

      3. 107. Pre-trading exploration expenditure.

      4. 108. Contributions by mining concerns to public services etc. outside the United Kingdom.

      5. 109. Restoration expenditure.

   3. Chapter III Limitations on Qualifying Expenditure etc.

      1. 110. Expenditure on the acquisition of land.

      2. 111. Reduction of qualifying expenditure for premium relief.

      3. 112. Restriction of disposal receipts.

      4. 113. Assets formerly owned by traders.

      5. 114. Assets previously acquired.

      6. 115. Expenditure partly attributable to mineral exploration and access.

      7. 116. Oil licences etc.

      8. 117. Transfer of mineral assets within a group.

      9. 118. Assets formerly owned by non-traders.

   4. Chapter IV Supplementary Provisions

      1. 119. Transitional provisions relating to old expenditure.

      2. 120. Time when expenditure is incurred.

      3. 121. Interpretation of Part IV.

6. Part V Agricultural Buildings etc.

   1. Chapter I Agriculture

      1. 122. Allowances for expenditure incurred before 1st April 1986.

      2. 123. Allowances for expenditure incurred after 31st March 1986.

      3. 124. Expenditure qualifying for allowances.

      4. 125. Meaning of “major interest” and “the relevant interest”.

      5. 126. Transfers of relevant interest.

      6. 127. Buildings etc. bought unused.

      7. 128. Balancing allowances and charges.

      8. 129. Balancing events.

      9. 130. Restriction of balancing allowances on sale of buildings.

   2. Chapter II Forestry

      1. 131. Forestry: transitional provisions.

   3. Chapter III Supplemental

      1. 132. Manner of making allowances and charges.

      2. 133. Interpretation of Part V.

7. Part VI Dredging

   1. 134. Allowances for expenditure on dredging.

   2. 135. Interpretation of Part VI.

8. Part VII Scientific Research

   1. 136. Allowances for expenditure on scientific research not of a capital nature, and on payments to research associations, universities etc.

   2. 137. Allowances for capital expenditure on scientific research.

   3. 138. Assets ceasing to belong to traders.

   4. 139. Supplemental.

9. Part VIII Supplementary Provisions

   1. 140. Income tax allowances and charges in taxing a trade etc.

   2. 141. Other income tax allowances.

   3. 142. Restriction of set-off of allowances against general income.

   4. 143. Tax agreements.

   5. 144. Corporation tax allowances and charges in taxing a trade.

   6. 145. Other corporation tax allowances.

   7. 146. Writing-down allowances under Parts V and VI.

   8. 147. Exclusion of double allowances.

   9. 148. Double allowances: transitional provisions.

   10. 149. Companies not resident in the United Kingdom.

   11. 150. Apportionment of consideration, and exchanges and surrenders of leasehold interests.

   12. 151. Procedure on apportionments.

   13. 152. Succession to trades etc.

   14. 153. Subsidies, contributions etc.

   15. 154. Allowances in respect of contributions to capital expenditure.

   16. 155. Further provisions relating to capital contributions.

   17. 156. Meaning of “sale, insurance, salvage or compensation moneys”.

   18. 157. Sales between connected persons etc.

   19. 158. Further provisions relating to sales without change of control or between connected persons.

   20. 159. Capital expenditure, capital sums and time when capital expenditure was incurred.

   21. 160. Meaning of “basis period”.

   22. 161. Other interpretative provisions.

   23. 162. Application to Scotland.

   24. 163. Continuity and construction of enactments etc.

   25. 164. Commencement, amendments and repeals.

   26. 165. Short title.

10. SCHEDULES

    1. Schedule 1

       Consequential amendments.

    2. Schedule 2

       Repeals.