Capital Allowances Act 2001

Capital Allowances Act 2001

Long title An Act to restate, with minor changes, certain enactments relating to capital allowances.
Citation 2001 c. 2
Territorial extent United Kingdom
Dates
Royal assent 22 March 2001
Commencement chargeable periods ending on or after 6 April 2001 (income tax)
chargeable periods ending on or after 1 April 2001 (corporation tax)
Text of statute as originally enacted
Revised text of statute as amended

The Capital Allowances Act 2001 is an Act of the Parliament of the United Kingdom that governs how capital allowances are deducted from income taxable under the Income Tax Act 2007 and the Corporation Tax Act 2009.

Types of allowances

Capital allowances fall under several categories:[1]

  • initial allowance (IA);
  • annual investment allowance (AIA)
  • first-year allowance (FYA);
  • writing down allowance (WDA);
  • balancing allowance.

Under the Act, they are available for specified types of claims:[2]

CAA 2001: available allowances
Part Allowance IA AIA FYA WDA
2 plant and machinery Green tick[3] Green tick[4] Green tick[5]
3 industrial buildings Green tick[6] Red X[7]
4 agricultural buildings[8]
4A flat conversion[9]
5 mineral extraction Green tick[10]
6 research and development Green tick[11]
7 know-how Green tick[12]
8 patents Green tick[13]
9 dredging Green tick[14]
10 assured tenancies[15] Green tick[16]

References

  1. ↑ "CA11101 - General: claims: types of capital allowance". HM Revenue and Customs.
  2. ↑ CAA 2001, s. 1
  3. ↑ on or after 1 April 2008 (for CT purposes) or 6 April 2008 (for IT purposes) that is not otherwise excluded: "CA23084 - PMA: Qualifying expenditure: Annual Investment Allowance (AIA) qualifying expenditure: what is AIA qualifying expenditure?". HM Revenue and Customs.
  4. ↑ restricted to specified qualifying activities: "CA23110 - Plant and Machinery Allowance (PMA): First Year Allowance (FYA): expenditure on which available and rates". HM Revenue and Customs.
  5. ↑ "CA23220 - PMA: WDA & balancing adjustments: Rate of WDA". HM Revenue and Customs.
  6. ↑ available in specified enterprise zones: "CA34050 - IBA: initial allowance: conditions". HM Revenue and Customs.
  7. ↑ withdrawn for financial years beginning on or after 1 April 2011: "CA34050 - IBA: initial allowance: conditions". HM Revenue and Customs.
  8. ↑ withdrawn for financial years beginning on or after 1 April 2011: "CA40050 - ABA: outline". HM Revenue and Customs.
  9. ↑ repealed by Finance Act 2012, with effect from April 2013"CA43100 - Outline, background and definitions". HM Revenue and Customs.
  10. ↑ "CA50410 - MEA: Allowances and charges: How allowances are given". HM Revenue and Customs.
  11. ↑ 100% of qualifying expenditure or amount claimed, whichever is less: "CA60500 - RDA: Allowances and charges". HM Revenue and Customs.
  12. ↑ "CA71200 - Know-how: Allowances: Calculation of allowances and charges". HM Revenue and Customs.
  13. ↑ "CA75110 - Patents: Allowances: Calculation of allowances". HM Revenue and Customs.
  14. ↑ "CA80100 - Dredging: Outline". HM Revenue and Customs.
  15. ↑ where qualifying expenditure was incurred before 1 April 1992: "CA85200 - Assured Tenancy Allowances: Background and definitions". HM Revenue and Customs.
  16. ↑ available only to approved bodies owning specified buildings: "CA86000 - Assured Tenancy Allowances: Writing down allowances". HM Revenue and Customs.
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