Capital Allowances Act 2001 section 485

Qualifying expenditure

Section 485 defines what counts as qualifying expenditure for the purposes of claiming dredging allowances, including the conditions that must be met and how to handle mixed-purpose spending.

• Capital expenditure on dredging qualifies if it is incurred for the purposes of a qualifying trade by the person carrying on that trade
• Where the person does not carry on a navigation, harbour, dock or inland waterway undertaking, the dredging must benefit vessels coming to, leaving or using a dock or other premises they occupy for their qualifying trade
• Where capital expenditure is incurred partly for a qualifying trade and partly for other purposes, only the portion attributable to the qualifying trade on a just and reasonable basis counts as qualifying expenditure
• Where only part of a trade or undertaking qualifies, the qualifying and non-qualifying parts are treated as if they were separate trades for the purposes of apportioning the expenditure