Capital Allowances Act 2001 section 360K

Meaning of "the residue of qualifying expenditure"

Section 360K defines the term "the residue of qualifying expenditure" for the purposes of the flat conversion allowances regime.

• The residue of qualifying expenditure is the amount of original qualifying expenditure that has not yet been written off.
• Expenditure is written off through initial allowances and writing-down allowances claimed under Chapter 9.
• The residue represents the balance still available for future tax relief.
• This concept is central to calculating ongoing allowances and balancing adjustments.