Capital Allowances Act 2001 section 484

Dredging allowances

Section 484 sets out the conditions under which capital allowances may be claimed for expenditure on dredging, defines what constitutes a qualifying trade, and explains what is meant by dredging for these purposes.

• Dredging allowances are available where a person carries on a qualifying trade and incurs qualifying expenditure on dredging
• A qualifying trade is one that involves maintaining or improving navigation of a harbour, estuary or waterway, or is a type of trade that qualifies for industrial buildings allowances
• Dredging must be carried out in the interests of navigation, but the term is broadly defined to include removing objects from the seabed or inland waterbed by any means, even if partly or wholly above water
• The widening of an inland waterway also counts as dredging for these purposes