Taxes Consolidation Act 1997 section 769D

Manner of making allowances and charges

Section 769D sets out how capital allowances and balancing charges in respect of transmission capacity rights are given effect.

• Where a company uses capacity rights for the purposes of its trade, any allowance or charge is made in computing the company's trading income for corporation tax purposes.
• The trade must be one whose profits are, or would be, chargeable to corporation tax for the relevant chargeable period.
• Where capacity rights are not used in a trade, an allowance is made by way of discharge or repayment of tax and is available only against income from capacity rights.
• A balancing charge on a non-trading company is made under Case IV of Schedule D.