Abbreviations and defined expressions

Legislation/Regulatory – CAA2001 s. 577, Sch. 1
HMRC Guidance – CA11850

Abolition of allowances

Legislation/Regulatory – FA2008 s. 84, 85, Sch. 27

Accounting period

Legislation/Regulatory – CAA2001 s. 6

Agreements for income tax purposes

Legislation/Regulatory – CAA2001 s. 565
HMRC Guidance – CA11150

Agricultural buildings allowances

– see Agricultural buildings allowances

Agricultural buildings and structures

Commentary – Hardman's Tax Rates and Tables ¶11-700

Agricultural land and buildings

– see also Agricultural land and buildings

Annual investment allowance

– see also Annual investment allowance; Plant and machinery allowances

Amount of

Commentary – Tax Reporter ¶236-410

Anti-avoidance provisions

Commentary – Tax Reporter ¶236-475

Claiming

Commentary – Tax Reporter ¶236-425

Companies

Commentary – Tax Reporter ¶236-475

Exclusions

Commentary – Tax Reporter ¶236-450
Case Law – (1) SETHIA v. JOHN (H.M. INSPECTOR OF TAXES) (2) SETHIA v. COMMISSIONERS OF INLAND REVENUE

First-year allowances, interaction with

Commentary – Tax Reporter ¶236-500 ; Tax Reporter ¶237-075

Generally

Commentary – Tax Reporter ¶235-025 ; Tax Reporter ¶236-000 ; Tax Reporter ¶236-400 ; Essential Tax Companion ¶60010 ; Essential Tax Companion ¶60140

Groups of companies

Commentary – Tax Reporter ¶236-475

Loss relief restriction

Commentary – Tax Reporter ¶236-495

Losses attributable to

Commentary – Tax Reporter ¶260-270

Maximum amount of

Commentary – Tax Reporter ¶236-410

Qualifying activity permanently discontinued

Commentary – Tax Reporter ¶236-450
Case Law – (1) SETHIA v. JOHN (H.M. INSPECTOR OF TAXES) (2) SETHIA v. COMMISSIONERS OF INLAND REVENUE

Restrictions on annual investment allowance (AIA)

Commentary – Tax Reporter ¶236-475–Tax Reporter ¶236-490

Scope of

Commentary – Tax Reporter ¶236-400

Transitional measures

Commentary – Tax Reporter ¶236-411–Tax Reporter ¶236-416

Writing-down allowances, interaction with

Commentary – Tax Reporter ¶236-500

Apportionment

Consideration

Legislation/Regulatory – CAA2001 s. 562
HMRC Guidance – BIM33725 ; CA12100 ; CA12200 ; CA12300 ; CA12500 ; CA26484

Procedure

Legislation/Regulatory – CAA2001 s. 563, 564
HMRC Guidance – CA12500

Where property sold together

Legislation/Regulatory – CAA2001 s. 562

Apportionments

Commentary – 4.7

Assets transferred between different property businesses

Commentary – 4.4

Assured tenancy allowances

– see also Assured tenancy allowances

Generally

Commentary – Hardman's Tax Rates and Tables ¶11-800

Basis periods

Commentary – Essential Tax Companion ¶60030

British Waterways Board transfer of property/rights and liabilities to Canal &River Trust and Canal &River Trading

Legislation/Regulatory – SI 2012/1709

Building societies

Commentary – Tax Reporter ¶805-880

Business premises renovation

Commentary – Hardman's Tax Rates and Tables ¶11-800

Business premises renovation allowances

– see Business premises renovation allowances

Capital expenditure

Generally

Commentary – Tax Reporter ¶235-100
HMRC Guidance – BIM35000 ; BIM35400 ; BIM35900 ; BIM46900
Case Law – (1) ANGLO-PERSIAN OIL COMPANY, LIMITED v. DALE (H.M. INSPECTOR OF TAXES. (2) ANGLO-PERSIAN OIL COMPANY, LIMITED v. THE COMMISSIONERS OF INLAND REVENUE. ; (1) B.W. NOBLE, LIMITED v. MITCHELL (H.M. INSPECTOR OF TAXES). (2) MITCHELL (H.M. INSPECTOR OF TAXES) v. B.W. NOBLE, LIMITED. ; (1) J.P. HANCOCK (SURVEYOR OF TAXES) v. GENERAL REVERSIONARY AND INVESTMENT COMPANY, LIMITED. (2) GENERAL REVERSIONARY AND INVESTMENT COMPANY, LIMITED v. J.P. HANCOCK (SURVEYOR OF TAXES). ; ATHERTON (H.M. INSPECTOR OF TAXES) v. BRITISH INSULATED AND HELSBY CABLES, LIMITED. ; SOUTHERN (H.M. INSPECTOR OF TAXES) v. BORAX CONSOLIDATED, LTD. ; Tucker (H.M. Inspector of Taxes) v. Granada Motorway Services Ltd. ; VALLAMBROSA RUBBER CO., LTD., v. FARMER (Surveyor of Taxes).

Meaning

Commentary – Tax Reporter ¶235-100
Legislation/Regulatory – CAA2001 s. 4, 10, Sch. 3, para. 9
HMRC Guidance – BIM35000 ; BIM35400 ; BIM35900 ; BIM46900 ; CA11530 ; CA11750 ; GIM4090 ; PIM2310
Case Law – (1) ANGLO-PERSIAN OIL COMPANY, LIMITED v. DALE (H.M. INSPECTOR OF TAXES. (2) ANGLO-PERSIAN OIL COMPANY, LIMITED v. THE COMMISSIONERS OF INLAND REVENUE. ; (1) B.W. NOBLE, LIMITED v. MITCHELL (H.M. INSPECTOR OF TAXES). (2) MITCHELL (H.M. INSPECTOR OF TAXES) v. B.W. NOBLE, LIMITED. ; (1) J.P. HANCOCK (SURVEYOR OF TAXES) v. GENERAL REVERSIONARY AND INVESTMENT COMPANY, LIMITED. (2) GENERAL REVERSIONARY AND INVESTMENT COMPANY, LIMITED v. J.P. HANCOCK (SURVEYOR OF TAXES). ; ATHERTON (H.M. INSPECTOR OF TAXES) v. BRITISH INSULATED AND HELSBY CABLES, LIMITED. ; SOUTHERN (H.M. INSPECTOR OF TAXES) v. BORAX CONSOLIDATED, LTD. ; Tucker (H.M. Inspector of Taxes) v. Granada Motorway Services Ltd. ; VALLAMBROSA RUBBER CO., LTD., v. FARMER (Surveyor of Taxes).

Timing of expenditure

Commentary – Tax Reporter ¶235-125–Tax Reporter ¶235-135
HMRC Guidance – CA11700 ; CA11800
Case Law – Tower Mcashback LLP1 v R & C Commrs; Tower Mcashback LLP2 v. R & C Commrs

When incurred

Legislation/Regulatory – CAA2001 s. 5
HMRC Guidance – BIM33725 ; CA11800 ; CIRD11690 ; OT21515

Capital gains tax

Assets held on 31 March 1982

Legislation/Regulatory – TCGA92 Sch. 3, para. 3

Assets held on 6 April 1965

Legislation/Regulatory – TCGA92 Sch. 2, para. 20

Base cost

Commentary – Tax Reporter ¶520-200

Capital allowances, meaning

Commentary – Tax Reporter ¶524-300

Computation of gain or loss

Commentary – Tax Reporter ¶524-400
HMRC Guidance – BIM46960 ; BIM46980

Groups of companies

Legislation/Regulatory – TCGA92 s. 174(4)

Indexation allowance

Legislation/Regulatory – TCGA92 s. 55(3)
HMRC Guidance – CG15455 ; CG16900 ; CG17450 ; CG17601

Interaction with

Commentary – Tax Reporter ¶235-700
HMRC Guidance – CG60970 ; CG76901

Loss restriction

Legislation/Regulatory – TCGA92 s. 41
HMRC Guidance – BLM74035 ; CA50440 ; CG12740 ; CG15400 ; CG15405 ; CG15410 ; CG15415 ; CG15420 ; CG15425 ; CG15430 ; CG15435 ; CG15445 ; CG15450 ; CG15485 ; CG15490 ; CG15773 ; CG15800 ; CG16900 ; CG17430 ; CG17434 ; CG17442 ; CG17450 ; CG17510 ; CG17514 ; CG17516 ; CG17517 ; CG41613 ; CG45921 ; CG45922 ; CG45923 ; CG57402 ; CG73669 ; CG73912

Nature of allowable losses

Commentary – Tax Reporter ¶524-300

Re-basing

Commentary – Tax Reporter ¶520-300

Renewals allowances, meaning

Commentary – Tax Reporter ¶524-350
Case Law – St C Smallwood v. R & C Commrs

Wasting assets

Commentary – Tax Reporter ¶235-700 ; Tax Reporter ¶508-700 ; Tax Reporter ¶508-800 ; Tax Reporter ¶524-450
HMRC Guidance – CG60970 ; CG76901

Capital sums, meaning

Legislation/Regulatory – CAA2001 s. 4

Car leasing company, deductibility of payments pursuant to finance leases

Case Law – Britax International GmbH v Inland Revenue Commissioners. [2002] BTC 247 ; Lloyds UDT Finance Ltd v Chartered Finance Trust Holdings plc & Ors. [2001] BTC 487

Caravans not qualified as plant for capital allowances purposes

Case Law – Telfer [2016] TC 05350

Caravans occupied in performance of employment duties

Case Law – Telfer [2016] TC 05350

Care business

– see Plant and machinery allowances

Care providers

Commentary – Tax Reporter ¶242-300 ; Tax Reporter ¶281-880

Cars

– see Cars and vans; Company vehicles and fuel; Plant and machinery allowances

Cash basis

Commentary – Tax Reporter ¶206-495

Categories of expenditure/asset

Commentary – Essential Tax Companion ¶60020

Cessation of business

Commentary – 9.5

Change of ownership, allowancs transfer

Condition A: principal company, meaning

Commentary – Tax Reporter ¶1135-420

Limiting conditions

Commentary – Tax Reporter ¶1135-450

Overview

Commentary – Tax Reporter ¶1135-400

Relevant excess, meaning

Commentary – Tax Reporter ¶1135-410

Restriction of allowances

Commentary – Tax Reporter ¶1135-460

Ships

Commentary – Tax Reporter ¶1135-480

Change of trader without change in ownership

Commentary – Tax Reporter ¶709-880
HMRC Guidance – CA15400

Changes in the law

Legislation/Regulatory – CAA2001 Sch. 3, para. 8

Chargeable period

Commentary – Tax Reporter ¶235-150
Legislation/Regulatory – CAA2001 s. 6 ; FA96 s. 135(1), (2)
HMRC Guidance – CA11510 ; CG65994

Claim for Business Premises Renovation Allowances (BPRAs) on a derelict church

Case Law – Senex Investments Ltd [2015] TC 04312

Claiming and disclaiming

Commentary – Tax Reporter ¶1140-700

Claims

Generally

Legislation/Regulatory – CAA2001 s. 3
HMRC Guidance – CA11120 ; GREIT04010

Outside time-limits

Legislation/Regulatory – SP 5/01

Claims consequential on discovery assessment

Commentary – 9.3.2

Claims for

Companies

Commentary – Tax Reporter ¶191-885

Generally

Commentary – Tax Reporter ¶235-050
HMRC Guidance – CA11130 ; CA11140 ; SALF404

Re-classification

Commentary – Tax Reporter ¶235-200
HMRC Guidance – CA31800

Time-limits

Commentary – Tax Reporter ¶235-050
HMRC Guidance – CA11130 ; CA11140 ; SALF404

Co-ownership authorised contractual schemes

Legislation/Regulatory – F(No. 2)A2017 s. 40-42

Commercial buildings

– see Enterprise zones

Companies

Allowances or charges given in calculating profits of company's trade

Commentary – Tax Reporter ¶709-650

Chargeable periods

Commentary – Tax Reporter ¶709-625

Claims

Commentary – Tax Reporter ¶709-625

Generally

Commentary – Tax Reporter ¶709-600

How relief is given

Commentary – Tax Reporter ¶709-625

Manner of making allowances and charges

Commentary – Tax Reporter ¶709-625

Non-resident companies

Commentary – Tax Reporter ¶235-500

Reconstructions

Commentary – Tax Reporter ¶235-450
HMRC Guidance – CA15300

Companies with investment business

Commentary – Essential Tax Companion ¶23025
Legislation/Regulatory – CTA2009 s. 1233
HMRC Guidance – CTM08800

Computation of profits, capital allowances not automatically deducted

Case Law – Elliss (H.M. Inspector of Taxes) v. B.P. Oil Northern Ireland Refinery Ltd.; Elliss (H.M. Inspector of Taxes) v. B.P. Tyne Tanker Co. Ltd. [1987] BTC 38

Computer software

Capital expenditure

Commentary – Tax Reporter ¶1178-500
HMRC Guidance – BIM35800 ; BIM35810 ; BIM35840

Disposal-value rules

Commentary – Tax Reporter ¶1178-600

Generally

Commentary – Tax Reporter ¶1178-000
HMRC Guidance – BIM35810

Leasing

Commentary – Tax Reporter ¶1178-700

Ownership requirements

Commentary – Tax Reporter ¶1178-400

Connected persons

Commentary – Tax Reporter ¶235-550
Legislation/Regulatory – CAA2001 s. 575, 575A
HMRC Guidance – CTM36335

Continuity of the law

Legislation/Regulatory – CAA2001 Sch. 3, para. 1-7

Contributions

Conditions for allowances

Legislation/Regulatory – CAA2001 s. 537
HMRC Guidance – CA14400 ; CA26050 ; CA26150 ; CA26400

Dredging

Legislation/Regulatory – CAA2001 s. 533, 543
HMRC Guidance – CA80700

General rule excluding

Legislation/Regulatory – CAA2001 s. 532
HMRC Guidance – BIM41090 ; BIM41140 ; CA14100

Insurance or compensation money

Legislation/Regulatory – CAA2001 s. 535

Mineral extraction

Legislation/Regulatory – CAA2001 s. 541
HMRC Guidance – CA14800

Northern Ireland regional development grants

Legislation/Regulatory – CAA2001 s. 534
HMRC Guidance – BIM40460 ; CA14200

Plant and machinery

Legislation/Regulatory – CAA2001 s. 538 ; FA2013 s. 73
HMRC Guidance – CA14500 ; CA22230 ; CA23740 ; CA26474

Public bodies

Legislation/Regulatory – CAA2001 s. 536

Transfer of trade or relevant activity

Legislation/Regulatory – CAA2001 s. 542

Contributions to expenditure

Allowances - dredging

Commentary – Tax Reporter ¶235-380

Allowances - general conditions

Commentary – Tax Reporter ¶235-350
HMRC Guidance – CA14400

Allowances - mineral extraction

Commentary – Tax Reporter ¶235-370

Allowances - plant and machinery

Commentary – Tax Reporter ¶235-360

Dredging

Commentary – Tax Reporter ¶235-380

Finance Act 2013, changes

Commentary – Tax Reporter ¶235-360

Generally

Commentary – Essential Tax Companion ¶60060

Grants from other sources

Commentary – Tax Reporter ¶235-300
HMRC Guidance – CA14100 ; CA14200 ; CA14300
Case Law – Cyril Lord Carpets, Ltd. v. Schofield (H.M. Inspector of Taxes) Cyril Lord Carpets, Ltd. v. Commissioners of Inland Revenue

Grants from public bodies

Commentary – Tax Reporter ¶235-300
HMRC Guidance – CA14100 ; CA14200 ; CA14300
Case Law – Cyril Lord Carpets, Ltd. v. Schofield (H.M. Inspector of Taxes) Cyril Lord Carpets, Ltd. v. Commissioners of Inland Revenue

Mineral extraction

Commentary – Tax Reporter ¶235-370

Plant and machinery

Commentary – Tax Reporter ¶235-360

Restriction on allowances

Commentary – Tax Reporter ¶235-300
HMRC Guidance – CA14100 ; CA14200 ; CA14300
Case Law – Cyril Lord Carpets, Ltd. v. Schofield (H.M. Inspector of Taxes) Cyril Lord Carpets, Ltd. v. Commissioners of Inland Revenue

Control, meaning

Legislation/Regulatory – CAA2001 s. 574
HMRC Guidance – CA11650 ; CA23089

Controlled foreign companies

Currency to be used in calculation

Commentary – Tax Reporter ¶770-295

Double relief, prevention

Commentary – Tax Reporter ¶770-285

Generally

Commentary – Tax Reporter ¶768-160 ; Tax Reporter ¶770-255
Legislation/Regulatory – ICTA88 Sch. 24, para. 10
HMRC Guidance – INTM255750 ; INTM255810

Industrial buildings

Commentary – Tax Reporter ¶770-275

Plant or machinery

Commentary – Tax Reporter ¶770-265

Corporation Tax (Northern Ireland) Act 2015

Commentary – Tax Reporter ¶235-000

Corporation tax allowances and charges

Self-assessment

Legislation/Regulatory – FA98 Sch. 18, para. 78-83

Special leasing

Legislation/Regulatory – CAA2001 s. 259, 260
HMRC Guidance – CTM04400 ; CTM16220 ; CTM80120 ; CTM80400 ; CTM80435 ; INTM167090 ; INTM245400

Cost of construction of car valeting bay, not an expense on plant

Case Law – Rogate Services Ltd [2014] TC 03449

Cushion gas

Legislation/Regulatory – CAA2001 s. 104G

Death of sole trader

Commentary – Tax Reporter ¶235-450
HMRC Guidance – CA15300

Decommissioning expenditure

Anti-avoidance provisions

Commentary – Tax Reporter ¶241-120

Extension

Commentary – Tax Reporter ¶799-235

Deductibility of fee incurred by partnership in consideration for services

Case Law – Vaccine Research Ltd Partnership (the ) & Anor v Revenue and Customs Commissioners [2014] BTC 525

Determination of market value

Commentary – Tax Reporter ¶290-260

Determination of questions affecting two or more persons

Legislation/Regulatory – CAA2001 s. 563, 564

Developer holding headlease

Case Law – Wellstead [2016] TC 05242

Double allowances exclusion

Generally

Legislation/Regulatory – CAA2001 s. 7
HMRC Guidance – CA16000 ; CA23084 ; CA31800

Interaction between fixtures and other claims

Legislation/Regulatory – CAA2001 s. 9

Pooling plant and machinery

Legislation/Regulatory – CAA2001 s. 8

Double allowances, exclusion

Commentary – Tax Reporter ¶235-200
HMRC Guidance – CA31800

Dredging

– see also Dredging allowances

Generally

Commentary – Hardman's Tax Rates and Tables ¶11-800 ; Essential Tax Companion ¶60320

Dredging allowances

– see Dredging allowances

Dual investing company, meaning

Legislation/Regulatory – CAA2001 s. 577

Dwelling-houses

Commentary – 4.44.5

Dwelling-houses let on assured tenancies

– see also Dwelling-houses let on assured tenancies; Assured tenancy allowances

Generally

Commentary – Hardman's Tax Rates and Tables ¶11-800

EC mergers directive

Commentary – Tax Reporter ¶103-840

Employees

Commentary – 6.2.1

Employees and office holders

Commentary – Tax Reporter ¶236-080 ; Tax Reporter ¶236-190 ; Tax Reporter ¶453-500–Tax Reporter ¶453-560
HMRC Guidance – EIM36550 ; EIM36560 ; EIM36710 ; EIM36720 ; EIM36730 ; EIM36810 ; EIM60055 ; EIM64650 ; EIM70705 ; EIM70790
Case Law – Hillyer v. Leeke (H.M. Inspector of Taxes)

Energy-saving plant and machinery

Generally

Legislation/Regulatory – SI 2018/268

Enterprise zones

– see also Enterprise zones

Commercial buildings or structures

Commentary – Hardman's Tax Rates and Tables ¶11-750

Designated areas

Commentary – Hardman's Tax Rates and Tables ¶11-750

Hotels

Commentary – Hardman's Tax Rates and Tables ¶11-750

Plant and machinery 100 per cent allowances

Commentary – Hardman's Tax Rates and Tables ¶11-650

Equipment leasing

Anti-avoidance legislation

Commentary – Tax Reporter ¶1101-100

Changing pattern of allowances and effect

Commentary – Tax Reporter ¶1100-300

Changing trends in the providers of lease financing

Commentary – Tax Reporter ¶1100-800

Cross-border leasing

Commentary – Tax Reporter ¶1101-000

Fixtures to land

Commentary – Tax Reporter ¶1101-200

Generally

Commentary – Tax Reporter ¶1100-000

Reforms

Commentary – Tax Reporter ¶1100-400

Source of finance

Commentary – Tax Reporter ¶1100-600

Specific rules

Commentary – Tax Reporter ¶1100-500

Tax relief

Commentary – Tax Reporter ¶1100-100

Estimated cost of

Commentary – Tax Reporter ¶235-000

European co-operative society (SCE)

Commentary – Tax Reporter ¶772-120

European company (SE)

Commentary – Tax Reporter ¶772-120

European cross-border mergers

Legislation/Regulatory – CAA2001 s. 561, 561A
HMRC Guidance – CA12500 ; CA15560 ; CA81600

Excess (group relief)

Commentary – 9.2.1

Exchanges and surrenders of leasehold interests

Legislation/Regulatory – CAA2001 s. 562, 572
HMRC Guidance – CA11530 ; CA11540 ; CA12200

Exclusion where expenditure incurred in chargeable period in which trade permanently discontinued

Case Law – Keyl v Revenue and Customs Commissioners [2015] BTC 523

Expenditure on research and development

Case Law – Vaccine Research Ltd Partnership (the ) & Anor v Revenue and Customs Commissioners [2014] BTC 525

Extension of

Legislation/Regulatory – FA2014 s. 64

Extent of expenditure

Commentary – Essential Tax Companion ¶60040

Farming and market gardening

Commentary – Tax Reporter ¶245-855 ; Tax Reporter ¶270-650 ; Tax Reporter ¶272-950
Case Law – BURMAH STEAM SHIP COMPANY, LIMITED v. THE COMMISSIONERS OF INLAND REVENUE. ; HIGGS v. WRIGHTSON (H.M. INSPECTOR OF TAXES) ; THE GLENBOIG UNION FIRECLAY CO., LTD. v. THE COMMISSIONERS OF INLAND REVENUE. ; White (H.M. Inspector of Taxes) v. G. & M. Davies

Finance leases

– see Finance leases; Finance leases and loans

First year

– see Plant and machinery allowances

First-year allowances

– see also Plant and machinery allowances

Amount of

Legislation/Regulatory – CAA2001 s. 52 ; FA2009 s. 24(1)
HMRC Guidance – EIM36610

Asset partly used/provided for qualifying activity, reduction of first-year allowances

Legislation/Regulatory – CAA2001 s. 205
HMRC Guidance – CA23087

Availability

Legislation/Regulatory – CAA2001 s. 39 ; FA2009 s. 24(1)

Cars with low carbon dioxide emissions

Legislation/Regulatory – CAA2001 s. 45D ; FA2008 s. 77(5), (6) ; FA2013 s. 68

Double relief prevention

Legislation/Regulatory – CAA2001 s. 52A

Energy saving plant and machinery

Legislation/Regulatory – CAA2001 s. 45A-45C, 52(3) ; FA2012 s. 45

Entitlement

Legislation/Regulatory – CAA2001 s. 52 ; FA2009 s. 24(1)

Environmentally beneficial machinery and plant

Legislation/Regulatory – CAA2001 s. 45H-45J ; FA2003 Sch. 30, para. 7

Gas refueling stations

Legislation/Regulatory – CAA2001 s. 45E ; FA2013 s. 69

General exclusions

Legislation/Regulatory – CAA2001 s. 46 ; FA2013 s. 70

Leasing plant and machinery, sideways loss relief restriction

Legislation/Regulatory – ITA2007 s. 76-78

Northern Ireland

Legislation/Regulatory – FA2008 s. 76(7), (8)

Partial depreciation subsidies, reduction of

Legislation/Regulatory – CAA2001 s. 210

Plant and machinery allowances

– see Plant and machinery allowances

Qualifying expenditure

Legislation/Regulatory – CAA2001 s. 39-49 ; FA2009 s. 24(1), (2)
HMRC Guidance – CA23170

Ring fence trades

Legislation/Regulatory – CAA2001 s. 45F, 45G

Ships

– see Ships

Small and medium-sized enterprises

Legislation/Regulatory – FA2008 s. 75(5)-(8)

Temporary rate

Legislation/Regulatory – FA2009 s. 24
HMRC Guidance – CA23111

Time expenditure incurred

Legislation/Regulatory – CAA2001 s. 50
HMRC Guidance – CA23110

Value added tax

Legislation/Regulatory – CAA2001 s. 236, 237

Fixed value requirement

Commentary – 4.77.9

Fixtures

– see also Plant and machinery allowances

Election to fix apportionment

Commentary – Essential Tax Companion ¶60110

Generally

Commentary – 4.44.64.77.17.9

New rules for purchasers

Commentary – Essential Tax Companion ¶60110

Fixtures election

Commentary – 4.77.9

Flat conversion

Commentary – Hardman's Tax Rates and Tables ¶11-800

Flat conversion allowances

– see also Flat conversion allowances

Generally

Commentary – Essential Tax Companion ¶60010 ; Essential Tax Companion ¶60300

Football grounds

Legislation/Regulatory – CAA2001 s. 27 ; M01/91
HMRC Guidance – CA22220

Foreign permanent establishments

Legislation/Regulatory – CAA2001 s. 15(2A), 62A ; CTA2009 s. 18C

Foster carers

Commentary – Tax Reporter ¶242-300

Furnished holiday lettings

– see Furnished holiday lettings

Gas storage facilities, cushion gas used in

Legislation/Regulatory – CAA2001 s. 104G

Generally

Commentary – Tax Reporter ¶235-000 ; VAT Reporter ¶37-500 ; 4.44.7

Gift of property

Commentary – 9.5

Giving effect to

Legislation/Regulatory – CAA2001 s. 2
HMRC Guidance – CA11110 ; CFM64150 ; CTM02350

Giving effect to allowances and charges

Companies with investment business

Commentary – Tax Reporter ¶236-095

Employees

Commentary – Tax Reporter ¶236-080

Furnished holiday lettings

Commentary – Tax Reporter ¶236-080

Leasing plant and machinery

Commentary – Tax Reporter ¶236-105 ; Tax Reporter ¶236-110
HMRC Guidance – CA29450

Life assurance business

Commentary – Tax Reporter ¶236-100

Mines, quarries and other concerns

Commentary – Tax Reporter ¶236-085

Property businesses

Commentary – Tax Reporter ¶236-080

Trades

Commentary – Tax Reporter ¶236-080

Grants

– see Grants or subsidies

Grants and subsidies

Commentary – Essential Tax Companion ¶60050

Grants or subsidies

Commentary – Tax Reporter ¶235-300
HMRC Guidance – CA14100 ; CA14200 ; CA14300
Case Law – Cyril Lord Carpets, Ltd. v. Schofield (H.M. Inspector of Taxes) Cyril Lord Carpets, Ltd. v. Commissioners of Inland Revenue

Group relief

Commentary – Essential Tax Companion ¶36265 ; Tax Reporter ¶738-050 ; Tax Reporter ¶739-100

History of

Commentary – Tax Reporter ¶102-250 ; Tax Reporter ¶235-000

Hotels

– see also Hotels and guest houses; Hotels

Generally

Commentary – Hardman's Tax Rates and Tables ¶11-700 ; Hardman's Tax Rates and Tables ¶11-750

Income tax allowances and charges

Generally

Legislation/Regulatory – FA94 s. 211(2)

Special leasing

Legislation/Regulatory – CAA2001 s. 258
HMRC Guidance – BIM100190 ; CA29450

Income tax relief for interest incurred on borrowings to fund partnership capital

Case Law – Vaccine Research Ltd Partnership (the ) & Anor v Revenue and Customs Commissioners [2014] BTC 525

Incurred expenses

Case Law – Daarasp LLP; Betex LLP [2018] TC 06718

Individual special lessors

Allowances and charges

Commentary – Tax Reporter ¶1147-800

Excess allowances

Commentary – Tax Reporter ¶1147-900

Finance costs

Commentary – Tax Reporter ¶1148-000

Industrial buildings

Commentary – Hardman's Tax Rates and Tables ¶11-700

Industrial buildings allowance

– see Industrial buildings allowances

Industrial buildings allowances

– see Industrial buildings allowances

Industrial buildings and structures

– see also Industrial buildings allowances

Generally

Commentary – Essential Tax Companion ¶60260

Insurance agents

Commentary – Tax Reporter ¶487-460
HMRC Guidance – EIM64650

Insurance companies

– see Insurance companies

Integral features

– see also Plant and machinery allowances

Generally

Commentary – 4.44.7

International Fund for Ireland grants

Case Law – McKinney (HM Inspector of Taxes) v. Hagans Caravans (Manufacturing) Ltd. [1997] BTC 402

Know-how

– see also Know-how; Know-how allowances

Generally

Commentary – Hardman's Tax Rates and Tables ¶11-800

Leased assets

– see Leased plant and machinery

Leasing plant and machinery

– see Leasing plant and machinery

Legislation

Commentary – Tax Reporter ¶235-000

Lessor a trader or non-trader

Avoiding leasing transaction (features)

Commentary – Tax Reporter ¶1145-400

Relevant factors

Commentary – Tax Reporter ¶1145-200
Case Law – (1) MARTIN v. LOWRY (H.M. INSPECTOR OF TAXES). (2) MARTIN v. THE COMMISSIONERS OF INLAND REVENUE. ; Bennett v. Rowse (H.M. Inspector of Taxes) ; Lupton (H.M. Inspector of Taxes) v. F.A. & A.B. Ltd. ; RUTLEDGE v. THE COMMISSIONERS OF INLAND REVENUE.

Lessor taxed as trader: corporate lessors

Allowances (trading expenses

Commentary – Tax Reporter ¶1145-600

Leasing partnership

Commentary – Tax Reporter ¶1146-200

Loss relief

Commentary – Tax Reporter ¶1145-700

Surrender of excess allowances

Commentary – Tax Reporter ¶1145-800

Trading on commercial basis

Commentary – Tax Reporter ¶1146-300

Transfer of the seller's trade

Commentary – Tax Reporter ¶1146-100

Lessor taxed as trader: individual lessors

Allowances as trading expense

Commentary – Tax Reporter ¶1146-500

Excess allowances

Commentary – Tax Reporter ¶1146-600

Loan relationships (companies with investment business)

Commentary – 8.3.6

Location of partnership's trade

Case Law – Vaccine Research Ltd Partnership (the ) & Anor v Revenue and Customs Commissioners [2014] BTC 525

Long-life assets

– see Plant and machinery allowances

Loss of relief

Case Law – R (on the application of Amrolia); Singh v Revenue and Customs Commissioners [2018] BTC 29

Loss relief

Commentary – 4.3

Machinery and plant

– see Plant and machinery allowances

Mineral extraction

– see also Mineral extraction allowances

Generally

Commentary – Hardman's Tax Rates and Tables ¶11-800 ; Essential Tax Companion ¶60310

Mining and oil industry

– see Oil extraction and related activities

Ministers of religion

Commentary – Tax Reporter ¶488-160
HMRC Guidance – EIM60055

Motor cars

– see Company vehicles and fuel

Nature of

Commentary – Essential Tax Companion ¶60000

Non-recourse financing

Anti-avoidance provisions in CAA 2001, Pt. 2, Ch. 17, application

Commentary – Tax Reporter ¶1126-100

Degrouping risk

Commentary – Tax Reporter ¶1126-980

Distributions for tax purposes

Commentary – Tax Reporter ¶1126-700
HMRC Guidance – CTM15520

Ensign Tankers case

Commentary – Tax Reporter ¶1126-450–Tax Reporter ¶1126-550
Case Law – Reynaud & Ors v IR Commrs

Furniss and Dawson approach

Commentary – Tax Reporter ¶1126-300–Tax Reporter ¶1126-350
Case Law – W.T. Ramsay Ltd v. Commissioners of Inland Revenue Eilbeck (H.M. Inspector of Taxes) v. Rawling

Generally

Commentary – Tax Reporter ¶1125-000

Hire purchase

Commentary – Tax Reporter ¶1126-950

HMRC's approach

Commentary – Tax Reporter ¶1126-400

Incur expenditure

Commentary – Tax Reporter ¶1125-200–Tax Reporter ¶1125-600

Interest relief denied to the lessor

Commentary – Tax Reporter ¶1127-100

Leasing activities by way of trade

Commentary – Tax Reporter ¶1125-800–Tax Reporter ¶1125-950
Case Law – Lupton (H.M. Inspector of Taxes) v. F.A. & A.B. Ltd.

Lessor's group relief relationship

Commentary – Tax Reporter ¶1126-900

Lord Hoffman's formulation

Commentary – Tax Reporter ¶1126-650

McGuckian case, effect

Commentary – Tax Reporter ¶1126-600

Normal commercial loan

Commentary – Tax Reporter ¶1126-920

Task risks

Commentary – Tax Reporter ¶1127-400

Non-resident companies

Commentary – Tax Reporter ¶235-500
Legislation/Regulatory – CAA2001 s. 566

Northern Ireland grants

– see Northern Ireland

Oil taxation

– see Oil taxation

One or more businesses, Malaysia

Case Law – The River Estates Sdn. Bhd. v. The Director General of Inland Revenue (Malaysia). [1984] BTC 20

Orders and regulations

Legislation/Regulatory – CAA2001 s. 570B

Other allowances

Commentary – Tax Reporter ¶290-185–Tax Reporter ¶290-245

Other special assets

Aircraft

Commentary – Tax Reporter ¶1177-100

Generally

Commentary – Tax Reporter ¶1177-000

Railway assets

Commentary – Tax Reporter ¶1177-500

Transport containers

Commentary – Tax Reporter ¶1177-200

Overview

Commentary – Tax Reporter ¶290-080

Partnerships

Commentary – Tax Reporter ¶235-450
HMRC Guidance – CA15300

Parts of assets

Legislation/Regulatory – CAA2001 s. 571
HMRC Guidance – BLM41020 ; CA11600 ; CA20080 ; CA23720 ; CA31550 ; CA32650 ; CA50470

Parts of assets, meaning

Commentary – Tax Reporter ¶235-600
HMRC Guidance – CA11540 ; CA12200

Patent allowances

– see Patent allowances

Patents

– see also Patents

Generally

Commentary – Hardman's Tax Rates and Tables ¶11-800

Payment to secure release of option over asset, capital or revenue expenditure

Case Law – Bolton (H.M. Inspector of Taxes) v. International Drilling Co. Ltd. International Drilling Co. Ltd. v. Bolton (H.M. Inspector of Taxes). [1983] BTC 3

Period of account

Legislation/Regulatory – CAA2001 s. 6

Plant and machinery

– see also Plant and machinery allowances

Long funding lease

Commentary – Tax Reporter ¶1100-100

Overview

Commentary – Tax Reporter ¶236-000

Pooling requirement

Commentary – 4.77.9

Pre-trading expenditure

Commentary – Tax Reporter ¶236-240

Private use

Commentary – 3.2.9

Privatisation of Royal Ordnance Factories

Case Law – Jukes (HM Inspector of Taxes) v SG Warburg & Co Ltd. [1996] BTC 309

Property business loss relief

– see Property business loss relief

Property loss restrictions

Commentary – 4.2.2

Purchase of building sold unused by a developer

Case Law – Wellstead [2016] TC 05242

Qualifying activities

Current rules

Commentary – Tax Reporter ¶236-150

Employments

Commentary – Tax Reporter ¶236-190
HMRC Guidance – EIM36550 ; EIM36560 ; EIM36710 ; EIM36720 ; EIM36730 ; EIM36810 ; EIM60055 ; EIM64650 ; EIM70705 ; EIM70790
Case Law – Hillyer v. Leeke (H.M. Inspector of Taxes)

Furnished holiday lettings

Commentary – Tax Reporter ¶236-150–Tax Reporter ¶236-175 ; Tax Reporter ¶236-255

Gifts of plant and machinery

Commentary – Tax Reporter ¶236-260

Investments of a company with investment business

Commentary – Tax Reporter ¶236-180

Long funding leases

Commentary – Tax Reporter ¶236-250

Old rules

Commentary – Tax Reporter ¶236-220

Part use of assets for

Commentary – Tax Reporter ¶236-275

Pre-trading expenditure

Commentary – Tax Reporter ¶236-240

Property business

Commentary – Tax Reporter ¶236-150 ; Tax Reporter ¶236-160 ; Tax Reporter ¶236-170

Shares in plant and machinery

Commentary – Tax Reporter ¶236-265

Special leasing

Commentary – Tax Reporter ¶236-185

Using an existing asset

Commentary – Tax Reporter ¶236-245

Qualifying expenditure

Buildings, structures and land

Commentary – Tax Reporter ¶236-310

Exclusions

Commentary – Tax Reporter ¶236-350–Tax Reporter ¶236-364

Generally

Commentary – Tax Reporter ¶236-300

Integral features etc.

Commentary – Tax Reporter ¶236-320

Quantum of expenditure incurred on research and development

Case Law – Vaccine Research Ltd Partnership (the ) & Anor v Revenue and Customs Commissioners [2014] BTC 525

Real estate investment trusts

Commentary – Tax Reporter ¶788-140

Reconstructions

Commentary – Tax Reporter ¶235-450
HMRC Guidance – CA15300

Renewals basis

Commentary – 4.6

Replacement of domestic items relief

Commentary – 4.6

Research and development

– see also Research and development (R&D) allowances

Generally

Commentary – Hardman's Tax Rates and Tables ¶11-800 ; Essential Tax Companion ¶60350

Ring fence trade

Legislation/Regulatory – CAA2001 s. 45F, 45G

Rollover relief

Commentary – Tax Reporter ¶235-700
HMRC Guidance – CG60970 ; CG76901

Sale and finance lease-back

Definition

Commentary – Tax Reporter ¶1132-225

Denial of allowances

Commentary – Tax Reporter ¶1132-250

Election for finance lease (post-11 March 2008)

Commentary – Tax Reporter ¶1133-500

Election under CAA 2001, s. 227 and 228

Commentary – Tax Reporter ¶1133-300

Enactment and eventual repeal of former CAA 2001, s. 222–224

Commentary – Tax Reporter ¶1132-925

Expenditure incurred (pre-1/6 April 2012)

– see Expenditure incurred (pre-1/6 April 2012)

Generally

Commentary – Tax Reporter ¶1131-700

Long funding leases (post-7 October 2007)

Commentary – Tax Reporter ¶1132-500

Possibilities for avoiding the application of the provisions for expenditure (pre-1/6 April 2012)

Commentary – Tax Reporter ¶1131-800

Restrictions (pre-October 2007)

– see Restrictions (pre-October 2007)

Sale and lease-back

Assigned contracts

Commentary – Tax Reporter ¶1130-200–Tax Reporter ¶1130-300
HMRC Guidance – CA28200

Calculating the restrictions

Commentary – Tax Reporter ¶1130-500

Considerations where CAA 2001, s. 218 may apply

Commentary – Tax Reporter ¶1130-550–Tax Reporter ¶1130-600
HMRC Guidance – CA20060

Disposal value is not brought into account

Commentary – Tax Reporter ¶1130-525

Generally

Commentary – Tax Reporter ¶1130-000

Hire-purchase

Commentary – Tax Reporter ¶1130-150

Lease-back transactions, definitions

Commentary – Tax Reporter ¶1130-400–Tax Reporter ¶1130-450

Relevant transactions

Commentary – Tax Reporter ¶1130-100 ; Tax Reporter ¶1130-350

Sale completed by long sub-lease, not assignment of headlease

Case Law – Wellstead [2016] TC 05242

Sale of assets, transfers on death

Commentary – Tax Reporter ¶627-900

Sale of property and time of sale

Legislation/Regulatory – CAA2001 s. 572

Sale of property, meaning

Commentary – Tax Reporter ¶235-550

Sale of relevant interest

Case Law – Wellstead [2016] TC 05242

Sales treated as being for alternative amount

Commentary – Tax Reporter ¶235-550

Scientific research

– see Research and development (R&D) allowances; Scientific research; Scientific research associations

Scientific research, qualifying expenditure

Case Law – Executors of Brown dec'd v IR Commrs (1996) Sp C 83 ; Gaspet Ltd. (formerly Saga Petroleum (UK) Ltd.) v. Elliss (H.M. Inspector of Taxes). [1987] BTC 218 ; Gaspet Ltd. (formerly Saga Petroleum (UK) Ltd.) v. Elliss. [1985] BTC 450

Sell off assets to connected persons

Commentary – Essential Tax Companion ¶60080

Ships

– see Ships

Short-life assets

– see Plant and machinery allowances

Sideways loss relief restrictions

Commentary – 1.3.2

Slide projector necessary to duties of vicar

Case Law – White (H.M. Inspector of Taxes) v. Higginbottom. [1983] BTC 46

Small pools allowance

Commentary – Tax Reporter ¶235-025

Special leasing: corporate lessors

Allowances and charges

Commentary – Tax Reporter ¶1147-300

Excess allowances

Commentary – Tax Reporter ¶1147-400

Sports pavilions

Commentary – Hardman's Tax Rates and Tables ¶11-700

Subsidies

– see Grants or subsidies

Subsidies and grants

Commentary – Essential Tax Companion ¶60050

Successions

– see also Successions

Generally

Commentary – Tax Reporter ¶235-450 ; Essential Tax Companion ¶60070
HMRC Guidance – CA15300

Surrendered, group relief

Case Law – Pilkington Brothers Limited v. Inland Revenue Commissioners. [1982] BTC 79

Tax years and basis periods

Commentary – Essential Tax Companion ¶60030

Temporary increase in

Legislation/Regulatory – FA2014 s. 10

Time of sale, meaning

Commentary – Tax Reporter ¶235-550

Timing and extent of expenditure

Commentary – Essential Tax Companion ¶60040

Timing of expenditure

Additional VAT liability, exceptions

Commentary – Tax Reporter ¶235-125
HMRC Guidance – CA11700 ; CA11800
Case Law – Tower Mcashback LLP1 v R & C Commrs; Tower Mcashback LLP2 v. R & C Commrs

Anti-avoidance

Commentary – Tax Reporter ¶235-125
HMRC Guidance – CA11700 ; CA11800
Case Law – Tower Mcashback LLP1 v R & C Commrs; Tower Mcashback LLP2 v. R & C Commrs

Concurrent promissory condition

Commentary – Tax Reporter ¶235-125
HMRC Guidance – CA11700 ; CA11800
Case Law – Tower Mcashback LLP1 v R & C Commrs; Tower Mcashback LLP2 v. R & C Commrs

Condition precedent promissory condition

Commentary – Tax Reporter ¶235-125
HMRC Guidance – CA11700 ; CA11800
Case Law – Tower Mcashback LLP1 v R & C Commrs; Tower Mcashback LLP2 v. R & C Commrs

Credit period exceeding four months

Commentary – Tax Reporter ¶235-135
HMRC Guidance – CA11800

General rule

Commentary – Tax Reporter ¶235-125
HMRC Guidance – CA11700 ; CA11800
Case Law – Tower Mcashback LLP1 v R & C Commrs; Tower Mcashback LLP2 v. R & C Commrs

Independent promissory condition

Commentary – Tax Reporter ¶235-125
HMRC Guidance – CA11700 ; CA11800
Case Law – Tower Mcashback LLP1 v R & C Commrs; Tower Mcashback LLP2 v. R & C Commrs

Milestone contracts

Commentary – Tax Reporter ¶235-130
HMRC Guidance – CA11800

Tonnage tax

– see Tonnage tax

Trading receipts

Commentary – Tax Reporter ¶707-030

Transfer of trade

To obtain balancing allowances

Legislation/Regulatory – CTA2010 s. 954-957

Without change of ownership

Legislation/Regulatory – CTA2010 s. 948
HMRC Guidance – BLM80386 ; BLM80388 ; BLM80535 ; CTM06110 ; CTM06210 ; CTM06250 ; CTM34505

Transfer pricing

Legislation/Regulatory – TIOPA2010 s. 213

Transfers

Division of UK business

Commentary – Tax Reporter ¶235-475

Formation of SE or SCE by merger

Commentary – Tax Reporter ¶235-475

Generally

Commentary – Tax Reporter ¶235-475

No change of ownership

Commentary – Tax Reporter ¶235-475

Transfers treated as sales

Commentary – Tax Reporter ¶235-550
Legislation/Regulatory – CAA2001 s. 573
HMRC Guidance – CA12500 ; CA13200 ; CA35200

Transport transfer schemes

– see Transport transfer schemes

Value added tax

– see Value added tax (VAT)

Value added tax capital goods scheme

Commentary – Tax Reporter ¶235-550 ; Essential Tax Companion ¶60040

VAT capital goods scheme

Commentary – Tax Reporter ¶235-400

Wasting assets

– see also Wasting assets

Generally

Legislation/Regulatory – TCGA92 s. 44, 47
HMRC Guidance – CG12060 ; CG12330 ; CG15400 ; CG15445 ; CG15455 ; CG15725 ; CG16900 ; CG60360 ; CG76700 ; CG76706 ; CG76723 ; CG76724 ; CG76725 ; CG76730 ; CG76744 ; CG76746 ; CG76901 ; CG76904 ; CG77940

Wasting assets, exemption entitlement

Case Law – Burman (H.M. Inspector of Taxes) v. Westminster Press Ltd. [1987] BTC 516

Wear and tear allowance

Commentary – 4.6

Writing-down allowances

Agricultural buildings and land

– see Agricultural buildings allowances

Business premises renovation allowances

– see Business premises renovation allowances

Dredging

– see Dredging allowances

Dwelling-houses let on assured tenancies

– see Assured tenancy allowances

Industrial buildings

– see Industrial buildings allowances

Know-how

– see Know-how allowances

Machinery and plant

– see Plant and machinery allowances

Mineral extraction

– see Mineral extraction allowances

Patent allowances

– see Patent allowances

Zero-emission goods vehicles

Legislation/Regulatory – FA2015 s. 45