F1PART 2ASTRUCTURES AND BUILDINGS ALLOWANCES
CHAPTER 8GIVING EFFECT TO ALLOWANCES
Trades
270HATrades
If the qualifying activity of a person who is entitled to an allowance for a chargeable period is a trade, the allowance is to be given effect in calculating the profits of that person’s trade, by treating the allowance as an expense of the trade.
Property businesses
270HBOrdinary UK property businesses and ordinary overseas property businesses
If the qualifying activity of a person who is entitled to an allowance for a chargeable period is—
a
an ordinary UK property business, or
b
an ordinary overseas property business,
the allowance is to be given effect in calculating the profits of that business by treating the allowance as an expense of that business.
Activities analogous to trades
270HCProfessions and vocations
If the qualifying activity of a person who is entitled to an allowance for a chargeable period is carrying on a profession or vocation, the allowance is to be given effect in calculating the profits or gains of that person’s profession or vocation by treating the allowance as an expense of the profession or vocation.
270HDMines, transport undertakings etc
If the qualifying activity of a person who is entitled to an allowance for a chargeable period is a concern listed in section 12(4) of ITTOIA 2005 or section 39(4) of CTA 2009 (mines, transport undertakings etc) the allowance is to be given effect in calculating the profits of the concern under Chapter 2 of Part 2 of ITTOIA 2005 by treating the allowance as an expense of the concern.
Companies with investment business
270HECompanies with investment business
1
This section applies if the qualifying activity of a person entitled to an allowance for a chargeable period is managing the investments of a company with investment business.
2
The allowance is, as far as possible, to be given effect by deducting the amount of the allowance from any income for the period of the business; and section 1233 of CTA 2009 (addition of allowances to company’s expenses of management) applies only so far as it cannot be given effect in this way.
3
Except as provided by subsection (2), the Corporation Tax Acts apply in relation to the allowance as if it were required to be given effect in calculating the profits of that person’s trade for the purposes of Part 3 of CTA 2009.
4
Corresponding allowances in the case of the same building or structure are not to be made under this Part both under this section and in any other way.
5
Expenditure to which this section applies is not to be taken into account otherwise than under this Part or as provided by section 1233 of CTA 2009.
6
This section is subject to sections 682(3) and 699(3) of CTA 2010.
Long-term business
270HFApplication of sections 270HG and 270HH
1
Sections 270HG and 270HH apply if a company which is carrying on any long-term business is entitled to an allowance under this Part for a chargeable period in respect of a relevant interest in a building or structure consisting of a management asset.
2
In this section and section 270HG, “management asset” has the same meaning as in Chapter 1 of Part 12 (long-term business).
C2270HGApportionment of allowances
1
This section applies if the long-term business of the company consists of—
a
basic life assurance and general annuity business, and
b
non-BLAGAB long-term business.
2
Any allowance under this Part to which the company is entitled for a chargeable period in respect of a management asset must be apportioned between the businesses in accordance with Chapter 7 of Part 2 of FA 2012.
270HHDifferent giving effect rules for BLAGAB
1
This section applies if a company—
a
carries on basic life assurance and general annuity business, and
b
is charged to tax in accordance with the I-E rules in respect of that business.
2
Any allowance under this Part to which the company is entitled in respect of the basic life assurance and general annuity business is to be given effect by treating it for the purposes of section 76 of FA 2012 as a deemed BLAGAB management expense for the chargeable period in question.
270HISupplementary
1
An allowance to which sections 270HG and 270HH apply is not to be given effect otherwise than in accordance with those sections.
2
Subsection (1) does not prevent any allowance which is to be given effect under those sections from being taken into account in any calculation for the purposes of—
a
section 93(5) of FA 2012 (minimum profits test), or
b
section 103 of FA 2012 (rules for determining policyholders’ share of I-E profit).
Pt. 2A inserted (5.7.2019) by The Capital Allowances (Structures and Buildings Allowances) Regulations 2019 (S.I. 2019/1087), regs. 1, 2