Capital Allowances Act 2001 section 487

Writing-down allowances

Section 487 sets out the rules for claiming writing-down allowances on qualifying dredging expenditure, including the rate, the claim period, and the circumstances in which the allowance is available or restricted.

• A writing-down allowance of 4% per year is available on qualifying dredging expenditure over a 25-year writing-down period, adjusted proportionately for chargeable periods longer or shorter than a year.
• The 25-year writing-down period begins on the first day of the chargeable period in which the qualifying expenditure was incurred, and the person must be carrying on the relevant qualifying trade during the period of claim.
• Total writing-down allowances claimed by all persons in respect of the same expenditure must not exceed the amount of that expenditure, and a claimant may elect to reduce the allowance to a specified amount.
• No writing-down allowance is available for a chargeable period in which a balancing allowance is made to the same person in respect of the same qualifying expenditure.