Capital Allowances Act 2001 section 373

Basic rule for calculating amount of allowance

Section 373 sets out the basic rule for calculating the writing-down allowance for agricultural buildings.

• The writing-down allowance for a chargeable period is 4% of the qualifying expenditure.
• If the chargeable period is longer than a year, the allowance is proportionately increased.
• If the chargeable period is shorter than a year, the allowance is proportionately reduced.
• The calculation ensures the allowance always corresponds to the actual length of the chargeable period.