Flat conversion allowances
60.Paragraph 36 provides that Part 4A of CAA does not apply in respect of expenditure incurred on or after 1 April 2013 for corporation tax purposes and on or after 6 April 2013 for income tax purposes.
61.Paragraph 37 repeals Part 4A of CAA.
62.Paragraph 38 makes a number of consequential amendments to CAA.
63.Paragraph 39 makes consequential amendments to FA 2001, ITTOIA and CTA 2009.
64.Paragraph 40(1) provides that the amendments at paragraphs 37 to 39 have effect on or after 1 April 2013 for corporation tax purposes and on or after 6 April 2013 for income tax purposes. But this is subject to paragraphs 41 and 42.
65.Paragraph 41 determines how a company’s entitlement to writing-down allowances (WDAs), for the purposes of section 393J of CAA, should be calculated where its chargeable period spans 1 April 2013.
66.It requires that the WDA be calculated as normal for the chargeable period, and time apportioned between the chargeable period falling before and after 1 April 2013 in accordance with this method:
where A is the number of days in the chargeable period falling before 1 April 2013 and B is the number of days in the chargeable period.
67.Paragraph 42 is a saving provision. It provides that paragraphs 37 and 40(1) do not affect the operation of sections 393I and 393M to 393P of CAA, in respect of expenditure incurred before 1 April 2013 for corporation tax purposes and 6 April 2013 for income tax purposes.
