Capital Allowances Act 2001 section 334

Writing off writing-down allowances

Section 334 explains how writing-down allowances for qualifying expenditure are written off, and how they interact with balancing events that occur at the end of the same chargeable period.

• When a writing-down allowance is made for qualifying expenditure, that amount is written off at the end of the chargeable period for which the allowance is given.
• If a balancing event occurs at the end of the same chargeable period, the writing-down allowance already written off must be taken into account.
• The written-off amount is factored into the calculation of the residue of qualifying expenditure immediately before the balancing event.
• This ensures that any balancing adjustment arising from the event is calculated on the correct remaining expenditure figure.