IFM02280 - Authorised investment funds (AIFs): taxation of funds: capital allowances

An AIF, not its investors, is entitled to claim any capital allowances and is liable to tax on any balancing charges. This is because the fund either is a company or, in the case of an authorised unit trust, is treated as a company for tax purposes by section 617 Corporation Tax Act 2010. The treatment prescribed at section 617(1) explicitly includes the provisions in the Taxes Acts relating to relief for capital expenditure.