[F1Chapter 6U.K. WRITING-DOWN ALLOWANCES
Textual Amendments
F1Pt. 4A (ss. 393A-393W) inserted (with effect as mentioned in s. 67 of the amending Act) by Finance Act 2001 (c. 9), s. 67, Sch. 19 Pt. 1
393J Entitlement to writing-down allowancesU.K.
(1)A person is entitled to a writing-down allowance for a chargeable period if he has incurred qualifying expenditure in respect of a flat and, at the end of the chargeable period—
(a)the person is entitled to the relevant interest in the flat,
(b)the person has not granted a long lease of the flat out of the relevant interest in consideration of the payment of a capital sum, and
(c)the flat is a qualifying flat.
(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 38(1) to (4) and (6) of ICTA, and
(b)without regard to section 393V(3) (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.
393K Amount of allowanceU.K.
(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.
393L Meaning of “the residue of qualifying expenditure”U.K.
The residue of qualifying expenditure is the qualifying expenditure that has not yet been written off in accordance with Chapter 8.]