Part 10 Assured tenancy allowances
Chapter 5 Writing-down allowances
Entitlement to and calculation of writing-down allowances
507 Entitlement to writing-down allowance
1
A person is entitled to a writing-down allowance for a chargeable period if—
a
qualifying expenditure has been incurred on a building,
b
that person is or has been an approved body,
c
at the end of that chargeable period the person is entitled to the relevant interest in the building, and
d
at the end of that chargeable period, the building is or includes a qualifying dwelling-house or two or more qualifying dwelling-houses.
2
A person claiming a writing-down allowance may require the allowance to be reduced to a specified amount.
508 Basic rule for calculating amount of allowance
1
The basic rule is that the writing-down allowance for a chargeable period is 4% of the qualifying expenditure attributable to the dwelling-house or (as the case may be) each dwelling-house falling within section 507(1)(d).
2
The allowance is proportionately increased or reduced if the chargeable period is more or less than a year.
3
The basic rule does not apply if section 509 applies.
509 Calculation of allowance after sale of relevant interest
1
This section applies if—
a
the relevant interest in a qualifying dwelling-house is sold, and
b
a balancing adjustment falls to be made under section 513 as a result of the sale.
2
If this section applies, the writing-down allowance for any chargeable period ending after the sale is—
where—
RQE is the amount of the residue of qualifying expenditure attributable to the dwelling-house immediately after the sale,
A is the length of the chargeable period, and
B is the length of the period from the date of the sale to the end of the period of 25 years beginning with the day on which the dwelling-house was first used.
3
On any later such sale, the writing-down allowance is further adjusted in accordance with this section.
510 Allowance limited to residue of qualifying expenditure attributable to dwelling-house
1
The amount of the writing-down allowance for a chargeable period in respect of a dwelling-house is limited to the residue of qualifying expenditure attributable to it.
2
For this purpose the residue is ascertained immediately before writing off the writing-down allowance at the end of the chargeable period.