Section 56 Amount of allowances and charges
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(1) The amount of the writing-down allowance to which a person is entitled for a chargeable period is [20%]1 of the amount by which AQE exceeds TDR.
Amendments
1 Substituted by Finance Act 2008 section 80(2) in relation to chargeable periods beginning on or after 1 April 2008 (for corporation tax purposes), and 6 April 2008 (for income tax purposes).
(1A) But in relation to qualifying expenditure incurred wholly for the purposes of a ring fence trade in respect of which tax is chargeable under section 501A of ICTA (supplementary charge in respect of ring fence trades), the amount of the writing-down allowance to which a person is entitled for a chargeable period is 25% of the amount by which AQE exceeds TDR.
Amendments
Subs (1A) inserted by Finance Act 2008 section 80(3) in relation to chargeable periods beginning on or after 1 April 2008 (for corporation tax purposes), and 6 April 2008 (for income tax purposes).
(2) [Subsection (1) and (1A)]1 is subject to—
[(za) section 56A (small main pools and special rate pools),]2
[(a) section 104D (special rate expenditure: 10%), and]3
(b) section 109 (overseas leasing: 10%).
Amendments
1 Substituted by Finance Act 2008 section 80(4) in relation to chargeable periods beginning on or after 1 April 2008 (for corporation tax purposes), and 6 April 2008 (for income tax purposes).
2 Para (za) inserted by Finance Act 2008 section 81(2) in relation to chargeable periods beginning on or after 1 April 2008 (for corporation tax purposes), and 6 April 2008 (for income tax purposes).
3 Para (a) substituted by Finance Act 2008 section 82 and Schedule 26 para 4 in relation to expenditure incurred on or after 1 April 2008 (for corporation tax purposes), and 6 April 2008 (for income tax purposes).
(3) If the chargeable period is more or less than a year, the amount is proportionately increased or reduced.
(4) If the qualifying activity has been carried on for part only of the chargeable period, the amount is proportionately reduced.
(5) A person claiming a writing-down allowance may require the allowance to be reduced to a specified amount.
(6) The amount of the balancing charge to which a person is liable for a chargeable period is the amount by which TDR exceeds AQE.
(7) The amount of the balancing allowance to which a person is entitled for the final chargeable period is the amount by which AQE exceeds TDR.
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