Capital Allowances Act 2001 section 109

Writing-down allowances at 10%

Section 109 provides for a reduced writing-down allowance rate of 10% for plant or machinery used for non-protected overseas leasing.

• The writing-down allowance is 10% of the excess of qualifying expenditure (AQE) over total disposal receipts (TDR), replacing the standard 25% rate
• The reduced rate applies where plant or machinery is used at any time during the designated period for overseas leasing that is not protected leasing
• The 10% rate does not apply to long-life asset expenditure, which continues to attract its own separate (lower) rate
• The 10% rate applies even where the expenditure is held in a single asset pool, and proportionate adjustments are made where chargeable periods are shorter or longer than usual