CTM02350 - Corporation Tax: capital allowances
CAA01/S2
Capital allowances are to be given effect in calculating profits for a chargeable period.
In the tax computation, any capital allowances (including balancing allowances) are deducted and any balancing charges are added in to arrive at the taxable profits.
See CAA01/S247 to CAA01/S261 for the specific rules on how to give effect to the allowances and charges for the various different types of business, such as a trade, an investment business or a property business.
See CA11140 for guidance on the form of claims to capital allowances by companies.