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As set out in B7.401, in the calculation of taxable profit or loss for a partnership capital allowances are computed at the partnership level and claimed by the partnership as an expense in computing the amount of the partnership's profits¹. After deducting any capital allowances the profits are allocated to each partner according to the profit sharing arrangement in place for that relevant period², see more details at B7.501.

Where a partnership is made up of partners who are all subject to income tax capital allowances are calculated under the income tax rules for capital allowances and included as a deduction from income in arriving at the profits to be allocated amongst the partners. Similarly, if the partners are all companies the profits are calculated under corporation tax rules and capital allowances are calculated as if the partnership was a company. Some capital allowances, eg certain first year allowances are only available to companies and a claim will depend on whether there are any corporate partners in the partnership. It should be noted though