Commentary on Sections Overview Chapter 3: Amounts treated as expenses of management Section 1233: Excess capital allowances
3124.This section gives a deduction for some capital allowances. It is based on section 75 of ICTA.
3125.A company with an investment business carries on a “qualifying activity” (see section 15(1)(g) of CAA). The rule in section 253 of CAA is that capital allowances are to be deducted in calculating the profits of the business. But, if there is an excess of allowances, the excess is treated as management expenses and can be set against profits generally.