Capital Allowances Act 2001 section 360J

Amount of allowance

Section 360J sets out how to calculate the writing-down allowance available for qualifying expenditure on a renovated business premises in a disadvantaged area.

• The annual writing-down allowance is 25% of the qualifying expenditure incurred on the renovation.
• If the chargeable period (typically an accounting period) is shorter or longer than 12 months, the 25% allowance is proportionately reduced or increased.
• The allowance for any period cannot exceed the residue of qualifying expenditure — that is, the amount of expenditure still unrelieved after deducting all previous allowances.
• The residue is calculated immediately before the writing-down allowance for the current period is written off at the end of that chargeable period.