Capital Allowances Act 2001

TradesU.K.

247 TradesU.K.

If the qualifying activity of a person who is entitled or liable to an allowance or charge for a chargeable period is a trade, the allowance or charge is to be given effect in calculating the profits of that person’s trade, by treating—

(a)the allowance as an expense of the trade, and

(b)the charge as a receipt of the trade.