Capital Allowances Act 2001 section 393R

Writing off initial allowances and writing-down allowances

Section 393R explains how initial allowances and writing-down allowances reduce the tax written-down value of mineral extraction expenditure in the pool.

• When an initial allowance or writing-down allowance is made for a chargeable period, the amount of that allowance is written off against the qualifying expenditure in the mineral extraction pool.
• The writing-off reduces the unrelieved qualifying expenditure available for future allowances, ensuring the same expenditure is not relieved twice.
• This mechanism works alongside the broader mineral extraction allowance rules to track remaining qualifying expenditure over time.
• The provision was amended by Finance Act 2012, Schedule 39, paragraph 37, to align with updated capital allowances legislation.