Capital Allowances Act 2001

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Capital Allowances Act 2001[a]
Act of Parliament
coat of arms
Parliament of the United Kingdom
Long titleAn Act to restate, with minor changes, certain enactments relating to capital allowances.
Citation2001 c. 2
Territorial extent United Kingdom
Dates
Royal assent22 March 2001
Commencement
  • chargeable periods ending on or after 6 April 2001 (income tax)
  • chargeable periods ending on or after 1 April 2001 (corporation tax)
[b]
Other legislation
Amends
Repeals/revokesSee § Repealed enactments
Amended by
List
Status: Amended
Text of statute as originally enacted
Revised text of statute as amended
Text of the Capital Allowances Act 2001 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

The Capital Allowances Act 2001 (c. 2) is an act of the Parliament of the United Kingdom that governs how capital allowances are deducted from income taxable under the Income Tax Act 2007 and the Corporation Tax Act 2009.

Types of allowances

Capital allowances fall under several categories:[1]

  • initial allowance (IA);
  • annual investment allowance (AIA)
  • first-year allowance (FYA);
  • writing down allowance (WDA);
  • balancing allowance.

Under the act, they are available for specified types of claims:[2]

CAA 2001: available allowances
Part Allowance IA AIA FYA WDA
2 plant and machinery Green tickY[3] Green tickY[4] Green tickY[5]
3 industrial buildings Green tickY[6] Red XN[7]
4 agricultural buildings[8]
4A flat conversion[9]
5 mineral extraction Green tickY[10]
6 research and development Green tickY[11]
7 know-how Green tickY[12]
8 patents Green tickY[13]
9 dredging Green tickY[14]
10 assured tenancies[15] Green tickY[16]

Provisions

Repealed enactments

Section 580 of the act repealed 32 enactments, listed in schedule 4 to the act.[17]

Citation Short title Extent of repeal
1970 c. 9 Taxes Management Act 1970 In section 98 in column 1 of the Table the words "Sections 23(4) and 49(4) of the Capital Allowances Act 1990".
1982 c. 39 Finance Act 1982 Section 137(2), (3), (6) and (7).
1984 c. 32 London Regional Transport Act 1984 In Schedule 5, paragraph 5(b) and the word "and" before it.
1988 c. 1 Income and Corporation Taxes Act 1988 In sections 65A(7) and 70A(6) the words "and section 29 of the 1990 Act (provisions relating to furnished holiday accommodation)".
In section 83A, in subsection (2), paragraph (b) and the word "or" before it and in subsection (3), paragraph (b) and the word "and" before it.
In section 84, in subsection (1), paragraph (b) and the word "or" before it and in subsection (3), paragraph (b) and the word "and" before it.
In section 117, in subsection (1), the words "or allowed" (in each place), "or section 141 of the 1990 Act", paragraph (b) and the word "or" before it, and, in subsection (2), in the definition of "the aggregate amount", the words "or allowed", "or section 141 of the 1990 Act", paragraph (b) and the word "or" before it.
In section 118, in subsection (1) the words "or allowed" (in each place), "or section 145 of the 1990 Act", paragraph (b) and the word "or" before it, and, in subsection (2), in the definition of "the aggregate amount", the words "or allowed", "or section 145 of the 1990 Act", and paragraph (b) and the word "or" before it.
In section 198(2), the words "and Part II of the 1990 Act (capital allowances in respect of machinery and plant)".
In section 384(10), the words following paragraph (b).
Section 393A(5) and (6).
In section 397, in subsection (5), the definition of "basis year" and, in the definition of "chargeable period", the words from "or any basis period" to the end of the definition; and subsection (6).
In section 411(10) the words "Without prejudice to the provisions of section 161(5) of the 1990 Act".
Sections 434D and 434E.
Sections 520 to 523.
Section 528(1) and (4).
Section 530.
In section 531, in subsection (3), the words following paragraph (b) and in subsection (7) the words "and section 530(1) and (6)".
In section 533(1), in paragraph (b) of the definition of "income from patents", the words "520(6), 523(3)," and the definition of "the commencement of the patent".
In section 577, in subsection (1), paragraph (c) and the word "and" before it, in subsection (7)(a) the words ", or to the use of an asset for," (in both places) and in subsection (10) the words ", or any claim for capital allowances in respect of the use of an asset for,".
In section 834(2), the words "and also for sections 144 and 145 of the 1990 Act".
In Schedule 19AC, paragraph 9C.
1989 c. 26 Finance Act 1989 Section 121.
In Schedule 13, paragraph 27.
1990 c. 1 Capital Allowances Act 1990 The whole act.
1990 c. 29 Finance Act 1990 Sections 60, 87 and 103.
In Schedule 7, paragraph 9.
In Schedule 9, paragraph 5.
In Schedule 13, paragraphs 1 to 6.
Schedule 17.
1991 c. 31 Finance Act 1991 Sections 59 to 61.
Schedule 14.
In Schedule 15, paragraph 28.
1991 c. 21 Disability Living Allowance and Disability Working Allowance Act 1991 In Schedule 2, paragraphs 20 and 21.
1991 c. 60 Water (Consolidation) (Consequential Provisions) Act 1991 In Schedule 1, paragraph 53.
1992 c. 4 Social Security Contributions and Benefits Act 1992 In Schedule 2, paragraph 1(b) and, in paragraph 2, the words from "subject to deduction" to the end.
1992 c. 6 Social Security (Consequential Provisions) Act 1992 In Schedule 2, paragraph 109.
1992 c. 7 Social Security Contributions and Benefits (Northern Ireland) Act 1992 In Schedule 2, paragraph 1(b) and, in paragraph 2, the words from "subject to deduction" to the end.
1992 c. 9 Social Security (Consequential Provisions) (Northern Ireland) Act 1992 In Schedule 2, paragraph 38.
1992 c. 12 Taxation of Chargeable Gains Act 1992 In section 195, in subsection (3), the words from "and "basis year"" to the end, subsection (5) and in subsection (6), paragraph (b) and the word "and" before it.
In section 288(1), the definition of "the 1990 Act".
In Schedule 10, paragraph 21.
1992 c. 48 Finance (No. 2) Act 1992 In section 43(1), the definition of "the 1990 Act".
Sections 67 to 71.
Schedule 13.
In Schedule 17, in paragraph 5(5), paragraph (c) and the word "and" before it.
1993 c. 34 Finance Act 1993 Sections 113 to 117.
Schedules 12 and 13.
1994 c. 9 Finance Act 1994 Sections 117, 118(6)(a), 119(1), 120 and 121.
Sections 211(1) and 212 to 213.
Section 214(4) to (6).
In Schedule 24, in paragraph 1(1), the definition of "the Allowances Act".
In Schedule 25, in paragraph 5(3), the definition of "the 1990 Act".
1994 c. 23 Value Added Tax Act 1994 In Schedule 14, paragraph 11.
1995 c. 4 Finance Act 1995 Sections 94 to 101.
In Schedule 8, paragraphs 23(1) and 24.
In Schedule 9, paragraph 3.
1996 c. 8 Finance Act 1996 Sections 135(3) to (5), 179 and 180.
In Schedule 20, paragraph 44.
In Schedule 21, paragraphs 26 to 34.
Schedule 35.
In Schedule 39, paragraph 1(1), (3) and (4).
1996 c. 55 Broadcasting Act 1996 In Schedule 7, in paragraph 1(1), the definition of "the Allowances Act" and in paragraph 13(1), in the heading the words "and structures".
1997 c. 11 Planning (Consequential Provisions) (Scotland) Act 1997 In Schedule 2, paragraph 45.
1997 c. 16 Finance Act 1997 Sections 66(2) and (5), 84 and 86.
In Schedule 12, in paragraph 11, in sub-paragraph (8) the words "or its basis period" and sub-paragraph (15).
Schedule 14.
In Schedule 15, paragraphs 3, 4, 5(3), 7, 8 and (9)(2).
Schedule 16.
1997 c. 58 Finance (No. 2) Act 1997 Sections 42 to 47.
1998 c. 14 Social Security Act 1998 Section 59(2).
1998 c. 17 Petroleum Act 1998 In Schedule 4, paragraph 27.
1998 c. 36 Finance Act 1998 Sections 83 to 85.
In Schedule 5, paragraphs 40 and 47 to 61.
In Schedule 7, in paragraph 1 the word "528(1)(a)" and paragraph 4.
1999 c. 16 Finance Act 1999 Sections 50(2), 77 and 78.
In Schedule 5, paragraph 2(3).
In Schedule 11, paragraphs 4 to 8.
1999 c. 29 Greater London Authority Act 1999 In Schedule 33, paragraph 12(1)(a).
2000 c. 17 Finance Act 2000 Sections 70 to 72.
Section 75(1) to (3), (5) and (6)(b) and (c).
Section 76(1).
Section 77.
Section 79.
Sections 80 and 81.
Section 113.
In Schedule 19, paragraphs 7 to 11.
In Schedule 22, in paragraph 84(1) the words "or structure".
2000 c. 38 Transport Act 2000 In Schedule 26, in paragraph 1(1), the definition of "the 1990 Act".

Notes

  1. Section 581.
  2. Section 579.

References

  1. "CA11101 - General: claims: types of capital allowance". HM Revenue and Customs.
  2. CAA 2001, s. 1
  3. on or after 1 April 2008 (for CT purposes) or 6 April 2008 (for IT purposes) that is not otherwise excluded: "CA23084 - PMA: Qualifying expenditure: Annual Investment Allowance (AIA) qualifying expenditure: what is AIA qualifying expenditure?". HM Revenue and Customs.
  4. restricted to specified qualifying activities: "CA23110 - Plant and Machinery Allowance (PMA): First Year Allowance (FYA): expenditure on which available and rates". HM Revenue and Customs.
  5. "CA23220 - PMA: WDA & balancing adjustments: Rate of WDA". HM Revenue and Customs.
  6. available in specified enterprise zones: "CA34050 - IBA: initial allowance: conditions". HM Revenue and Customs.
  7. withdrawn for financial years beginning on or after 1 April 2011: "CA34050 - IBA: initial allowance: conditions". HM Revenue and Customs.
  8. withdrawn for financial years beginning on or after 1 April 2011: "CA40050 - ABA: outline". HM Revenue and Customs.
  9. repealed by Finance Act 2012, with effect from April 2013"CA43100 - Outline, background and definitions". HM Revenue and Customs.
  10. "CA50410 - MEA: Allowances and charges: How allowances are given". HM Revenue and Customs.
  11. 100% of qualifying expenditure or amount claimed, whichever is less: "CA60500 - RDA: Allowances and charges". HM Revenue and Customs.
  12. "CA71200 - Know-how: Allowances: Calculation of allowances and charges". HM Revenue and Customs.
  13. "CA75110 - Patents: Allowances: Calculation of allowances". HM Revenue and Customs.
  14. "CA80100 - Dredging: Outline". HM Revenue and Customs.
  15. where qualifying expenditure was incurred before 1 April 1992: "CA85200 - Assured Tenancy Allowances: Background and definitions". HM Revenue and Customs.
  16. available only to approved bodies owning specified buildings: "CA86000 - Assured Tenancy Allowances: Writing down allowances". HM Revenue and Customs.
  17. "Capital Allowances Act 2001", legislation.gov.uk, The National Archives, 2001 c. 2