CIRD12260 | Core computational rules: accounting: entries from which deductible debits derived: exclusion of expenditure on tangible assets

CTA09/PART8/S727 (2), (3)

Sometimes capital expenditure on a tangible asset may arguably have been incurred for one of the purposes set out in CIRD12250. For example, a company may incur expenditure acquiring motor vehicles used by staff of the department responsible for promoting the company’s brand names. Such capital expenditure is specifically excluded from CTA09/PART8 by S727(2).

S727(3) provides that the term, ‘capital expenditure’ in S727 (2) is defined by reference to CAA01. In essence that is expenditure that is not a revenue deduction - see CA11530.