Part 1

Introduction
Chapter 1

Capital allowances: general

Meaning of “chargeable period”
6
1
In this Act “chargeable period” means—
a
for income tax purposes, a period of account, or
b
for corporation tax purposes, an accounting period of a company.
2
“Period of account” means—
a
in the case of a person entitled to an allowance or liable to a charge in calculating the profits of his trade, profession or vocation, a period for which accounts are drawn up for the purposes of the trade, profession or vocation, and
b
in the case of any other person entitled to an allowance or liable to a charge, a tax year.
3
Subsection (2)(a) is subject to subsections (4) to (6).
4
If—
a
two periods of account overlap, or
b
one period of account includes another,
the period common to both is to be treated as part of the first period of account only.
5
If there is a gap between two periods of account, the gap is to be treated as part of the first period of account.
6
If a period of account would (apart from this subsection) be longer than 18 months, that period must be treated as divided into separate periods of account—
a
the first beginning with the start date of the original period, and
b
each subsequent one beginning with an anniversary of that date,
so as to ensure that none of the periods of account is longer than 12 months.