Capital Allowances Act 2001 section 75

General limit on amount of writing-down allowance

Section 75 sets a maximum annual cap on the writing-down allowance available for qualifying expenditure on certain cars subject to the restriction in section 74.

• The writing-down allowance for a car to which section 74 applies is capped at £3,000 per chargeable period.
• If the chargeable period is longer or shorter than a year, the £3,000 limit is proportionately increased or reduced accordingly.
• The allowance may be further reduced where the expenditure is met by another person, the car is used partly for non-qualifying purposes, or a partial depreciation subsidy applies.
• These additional restrictions are found in sections 76, 77 and 78 respectively.