EIM36850 - Deductions from earnings: capital allowances: procedures: how capital allowances are given and how balancing charges are taxed

Section 262 CAA2001 and Section 7(5) ITEPA 2003

Capital allowances

Capital allowances are given as a deduction from earnings, in the same way as expenses under section 336 ITEPA 2003. If the allowances due exceed the emoluments, see EIM36890.

Balancing charges

Balancing charges relating to employees and office holders are chargeable to tax as earnings from the employment or office.