Capital Allowances Act 2001 section 126

Minor definitions

Section 126 defines key terms used throughout the chapter, specifically clarifying what is meant by "normal writing-down allowance," when expenditure has "qualified" for such an allowance, and when expenditure has qualified for a first-year allowance.

• A "normal writing-down allowance" is one calculated at the standard rate, ignoring the reduced rates that apply to long-life assets (section 102) and certain other assets attracting a lower rate (section 109).
• Expenditure has "qualified for a normal writing-down allowance" if it was included in a person's available qualifying expenditure for a chargeable period, and that expenditure was not subject to either of the reduced-rate provisions.
• Expenditure has "qualified for a first-year allowance" if such an allowance was made on the whole or any part of that expenditure.
• These definitions ensure consistent interpretation of these terms wherever they appear in the chapter.