Capital Allowances Act 2001 section 525

Writing off writing-down allowances

Section 525 explains how writing-down allowances for qualifying expenditure on a dwelling-house are written off and how they interact with balancing events.

• When a writing-down allowance is granted for qualifying expenditure on a dwelling-house, it is written off at the end of the chargeable period in which it was made.
• The write-off reduces the residue of qualifying expenditure attributable to the dwelling-house.
• If a balancing event happens at the end of the same chargeable period, the written-off amount is taken into account first when calculating the residue immediately before the event.
• This residue figure then determines whether any balancing adjustment is required.