PIM2310 - Deductions: premiums paid: interaction with capital allowances

Section 4 of the Capital Allowances Act 2001 contains rules to ensure that where relief is given under the additional calculation rule - see section 227 onwards of the Corporation Tax Act 2009 and section 287 onwards of the Income Tax (Trading and Other Income) Act 2005 - capital expenditure for capital allowances purposes must exclude sums taken into account in computing rental business profits. Similarly, amounts chargeable to tax as property income cannot also be taxed under the capital allowances provisions.