Search Legislation

Capital Allowances Act 2001


881.This Chapter provides how plant and machinery allowances and charges are given effect for income tax and corporation tax. There are specific rules for separate qualifying activities. There are additional rules for life assurance businesses.

882.The general rule in section 2 is applied in detail by:

  • section 247 for trades;

  • section 248 for ordinary Schedule A businesses;

  • section 249 for furnished holiday lettings businesses;

  • section 250 for overseas property businesses;

  • section 251 for professions and vocations; and

  • section 252 for mines, transport undertakings and other “section 55 concerns” (which give effect to allowances as expenses and charges as receipts of the trade or business or concern).

883.In addition:

  • section 253 provides for investment companies to give effect so far as possible to allowances as a deduction from income of the business and charges as income of the business;

  • sections 254 to 257 give effect to plant and machinery allowances and charges for management assets of a company carrying on life assurance business;

  • sections 258 to 261 give effect to allowances and charges for special leasing of plant or machinery as a deduction from income from special leasing or a charge under Case VI of Schedule D respectively; and

  • sections 262 gives effect to allowances and charges for employees and office-holders as deductions from emoluments or emoluments respectively.

Back to top


Print Options


Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.


More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources