Capital Allowances Act 2001 section 212K

Relevant tax written-down value

Section 212K explains how to calculate the relevant tax written-down value (RTWDV), which is a key figure used in the anti-avoidance rules on allowance buying.

• RTWDV is found by adding together two amounts: the unrelieved qualifying expenditure carried forward in capital allowance pools (Amount 1) and any postponed ship expenditure (Amount 2).
• When calculating the pool balances, you must assume that all eligible expenditure has been allocated to pools, including amounts that could have been but were not allocated, and amounts normally prevented from allocation, and you must ignore any transactions on the relevant day that would reduce pool balances.
• Where condition C (a qualifying change involving a company without a change in ownership) applies, the figures for Amounts 1 and 2 are calculated as if the qualifying change had not taken place.
• The "old period" used in the calculation is the accounting period ending immediately before the relevant day, as defined for the purposes of the rules on excess allowances in pools.