Part 7 Know-how allowances
Chapter 3 Allowances and charges
457 Determination of entitlement or liability
1
Whether a person is entitled to a writing-down allowance or a balancing allowance, or liable to a balancing charge, for a chargeable period is determined separately for each pool of qualifying expenditure and depends on—
a
the available qualifying expenditure in that pool for that period (“AQE”), and
b
the total of any disposal values to be brought into account in that pool for that period (“TDV”).
2
If AQE exceeds TDV, the person is entitled to a writing-down allowance or a balancing allowance for the period.
3
If TDV exceeds AQE, the person is liable to a balancing charge for the period.
4
The entitlement under subsection (2) is to a writing-down allowance except for the final chargeable period when it is to a balancing allowance.
5
The final chargeable period is the chargeable period in which the trade is permanently discontinued.