Section 101 | Meaning of “capital allowance excess”

(1)In section 99(1)(b) “capital allowance excess” means an excess of the kind mentioned in section 260(1) of CAA 2001 for the surrender period.

(2)In determining if there is such an excess for the surrender period and, if there is, its amount, apply section 260(1) of CAA 2001 but subject to subsections (3) and (4).

(3)Capital allowances brought forward from previous accounting periods are to be ignored.

(4)The reference in section 260(1) of CAA 2001 to a description of the company's income is to be read as a reference to that description of income before deductions for—

(a)losses of any accounting period other than the surrender period, or

(b)capital allowances.