CA29320 - PMA: How allowances and charges are made: Trade, UK property business, overseas property business, professions and vocations, mines, transport undertakings, investment company, employment or office
The details of the general rule are as follows:
Qualifying activity |
PMAs |
Balancing charge |
Legislation |
|---|---|---|---|
Trade |
treat as an as an expenses of the trade |
treat as a receipt of the trade |
CAA01/S247 |
UK property business |
treat as an expense of the business |
treat as a receipt of the business |
CAA01/S248 |
Overseas property business |
treat as an expense of the business |
treat as a receipt of the business |
CAA01/S250 |
Profession or vocation |
treat as an expense of the profession or vocation |
treat as a receipt of the profession or vocation |
CAA01/S251 |
Mines, transport undertakings |
treat as an expense of the concern |
treat as a receipt of the concern |
CAA01/S252 |
Investment company |
if possible deduct from any income for the period of the business, if there is an excess of allowances, add it to the company's management expenses (see CTM08620), but allowances cannot be given in this way and in some other way on the same item of plant and machinery |
treat as a income of the business |
CAA01/S253 |
Employment or office |
treat as an amount to be deducted from the earnings |
treat as earnings |
CAA01/S262 |
Furnished holiday lettings business (repealed)
The furnished holiday lettings rules have been repealed from April 2025 and so a UK or EEA furnished holiday lettings business is no longer a qualifying activity for PMA with effect for:
- accounting periods beginning on or after 1 April 2025 for Corporation Tax purposes; and
- periods of account beginning on or after 6 April 2025 for Income Tax purposes.
For chargeable periods beginning before those dates for a UK or EEA furnished holiday lettings business, treat PMAs as an expense of the business and a balancing charge as a receipt of the business (CAA01/S249 and 250A - note ICTA88/S503 applies).