Taxes Consolidation Act 1997 section 409F

Interpretation and general (Chapter 4A)

Section 409F sets out the definitions and scope of the chapter that limits the use of property-related capital allowances, and applies notwithstanding any other provision of the Tax Acts.

• The chapter overrides all other provisions of the Tax Acts and restricts the carry-forward of property-related capital allowances beyond defined cut-off points.
• Two categories of allowance are defined: area-based capital allowances (arising under designated area, urban or rural renewal schemes) and specified capital allowances (writing-down allowances, balancing allowances, and certain other property-based accelerated allowances).
• For an individual, the cut-off is the tax year beginning immediately after the year in which the property's tax life ends, or 2015, whichever is later; for a company, it is the accounting period beginning immediately after the accounting period in which the tax life ends, or the first accounting period ending in 2015, whichever is later.
• Key terms — including "active partner", "active trader", "specified relief", "tax life", and "writing down allowance" — take their meanings from other sections of the TCA 1997, in particular sections 409A, 409D, 272, 273, 274, 321 and 485C.

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