Taxes Consolidation Act 1997 section 300

Manner of making allowances and charges

Section 300 sets out how capital allowances and balancing charges for machinery or plant are applied for tax purposes, depending on whether the person is a trader, a non-trading lessor, or a residential landlord.

• Capital allowances and balancing charges for machinery or plant are generally given or made in taxing the profits of the person's trade, meaning they are deducted from or added to taxable trading profits.
• For a non-trading lessor (someone who leases machinery or plant outside of a trade), allowances are given by way of discharge or repayment of tax and are set primarily against income from the letting of machinery or plant.
• Any balancing charge on a non-trading lessor is assessed under Case IV of Schedule D.
• Wear and tear allowances for fixtures and fittings in furnished rented residential accommodation are given against the landlord's rental income under Case V of Schedule D.