Capital Allowances Act 2001 section 310

Basic rule for calculating amount of allowance

Section 310 sets out the basic rule for calculating the annual writing-down allowance on industrial buildings and structures.

• Qualifying enterprise zone expenditure attracts a writing-down allowance of 25% of the expenditure per year.
• All other qualifying expenditure attracts a writing-down allowance of 4% of the expenditure per year.
• The allowance is proportionately adjusted if the chargeable period is longer or shorter than a year.
• This basic rule is overridden where section 311 applies, which deals with the calculation after a sale of the relevant interest.