Finance Act 2019

31 Special rate expenditure on plant and machinery

(1) Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.

(2) In section 104D(1) (writing-down allowances in respect of special rate expenditure) for “8%” substitute “6%”.

(3) Accordingly, in—

(a) section 56(2)(a),

(b) the heading of section 104D, and

(c) section 104E(1)(a),

for “8%” substitute “6%”.

(4) The amendments made by subsections (2) and (3) have effect in relation to chargeable periods beginning on or after the relevant day.

(5) In relation to a chargeable period that begins before and ends on or after the relevant day, section 104D(1) of CAA 2001 has effect as if the reference to 8% was a reference to X%.

(6) For the purposes of subsection (5), X is—

where—

• BRD is the number of days in the chargeable period before the relevant day,

• ARD is the number of days in the chargeable period on or after the relevant day, and

• CP is the number of days in the chargeable period.

(7) Where X would be a figure with more than 2 decimal places it is to be rounded up to the nearest second decimal place.

(8) In this section “the relevant day” is—

(a) for corporation tax purposes, 1 April 2019, and

(b) for income tax purposes, 6 April 2019.