Taxes Consolidation Act 1997 section 304

Income tax: allowances and charges in taxing a trade, etc

Section 304 details the procedures for claiming capital allowances under Part 9 for income tax purposes, including the carry back of certain unused allowances to 2019 and the carry forward of excess allowances to subsequent years.

• Capital allowance claims must be included in the annual income tax return, and claims for industrial building allowances or initial allowances for new plant and machinery must be accompanied by a certificate verifying the expenditure.
• Certain unused specified allowances relating to the period 1 January to 31 December 2020 may be carried back and set against profits of the same trade or profession for 2019, but cannot be used to create or increase a trading loss.
• Where full effect cannot be given to allowances in any year due to insufficient profits, the excess may be carried forward to subsequent years until fully utilised.
• The capital allowance rules apply equally to professions, employments and offices, but the automatic carry forward of excess allowances does not apply to allowances given against rental income under Case V of Schedule D.