Part 2Plant and machinery allowances

Chapter 19Giving effect to allowances and charges

Activities analogous to trades

252Mines, transport undertakings etc.

If the qualifying activity of a person who is entitled or liable to an allowance or charge for a chargeable period is a concern listed in section 55(2) of ICTA (mines, transport undertakings etc.) the allowance or charge is to be given effect in calculating the profits of the concern under Case I of Schedule D, by treating—

(a)

the allowance as an expense of the concern, and

(b)

the charge as a receipt of the concern.