F1 Part 4A FLAT CONVERSION ALLOWANCES

Chapter 6 WRITING-DOWN ALLOWANCES

393K Amount of allowance

(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.