The Capital Allowances Act 2001 (c. 2) is an act of the

Parliament of the United Kingdom The Parliament of the United Kingdom of Great Britain and Northern Ireland is the supreme legislative body of the United Kingdom, and may also legislate for the Crown Dependencies and the British Overseas Territories. It meets at the Palace ...

that governs how

capital allowance Capital allowances is the practice of allowing tax payers to get tax relief on capital expenditure by allowing it to be deducted against their annual taxable income. Generally, expenditure qualifying for capital allowances will be incurred on speci ...

s are deducted from income taxable under the

Income Tax Act 2007 The Income Tax Act 2007c 3 is an Act of the Parliament of the United Kingdom. It is the primary Act of Parliament concerning income tax paid by individual earners subject to the law of United Kingdom, and mostly replaced the Income and Corporat ...

and the Corporation Tax Act 2009.

Types of allowances

Capital allowances fall under several categories: :* initial allowance (IA); :* annual investment allowance (AIA) :* first-year allowance (FYA); :*

writing down allowance Capital allowances is the practice of allowing tax payers to get tax relief on capital expenditure by allowing it to be deducted against their annual taxable income. Generally, expenditure qualifying for capital allowances will be incurred on speci ...

(WDA); :* balancing allowance. Under the Act, they are available for specified types of claims:CAA 2001, s. 1

References

United Kingdom Acts of Parliament 2001 {{UK-statute-stub