Modifications etc. (not altering text)
C1 S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Textual Amendments
F1Pt. 3A inserted (11.4.2007 with effect in accordance with s. 92 of the amending Act) by Finance Act 2005 (c. 7), Sch. 6 para. 1; S.I. 2007/949, art. 2
(1)A person is entitled to a writing-down allowance for a chargeable period if he has incurred qualifying expenditure in respect of a qualifying building and, at the end of the chargeable period—
(a)the person is entitled to the relevant interest in the qualifying building,
(b)the person has not granted a long lease of the qualifying building out of the relevant interest in consideration of the payment of a capital sum, and
(c)the qualifying building constitutes qualifying business premises.
(2) In subsection (1)(b) “ long lease ” means a lease the duration of which exceeds 50 years.
(3)Whether the duration of a lease exceeds 50 years is to be determined—
(a) in accordance with section 303 of ITTOIA 2005, and
(b)without regard to section 360Z3(3) of this Act (new lease granted as a result of the exercise of an option treated as continuation of old lease).
(4)A person claiming a writing-down allowance may require the allowance to be reduced to a specified amount.
(1)The writing-down allowance for a chargeable period is 25% of the qualifying expenditure.
(2)The allowance is proportionately increased or reduced if the chargeable period is more or less than a year.
(3)The amount of the writing-down allowance for a chargeable period is limited to the residue of qualifying expenditure.
(4)For this purpose the residue is ascertained immediately before writing off the writing-down allowance at the end of the chargeable period.
The residue of qualifying expenditure is the qualifying expenditure that has not yet been written off in accordance with Chapter 9.]