Part 9

Dredging allowances

Writing-down and balancing allowances

Writing-down allowances
487
1
A person is entitled to a writing-down allowance for a chargeable period if—
a
qualifying expenditure has been incurred on dredging,
b
at any time during the chargeable period, the person is carrying on the qualifying trade for the purposes of which the qualifying expenditure was incurred, and
c
that time falls within the writing-down period.
2
The writing-down period, in relation to qualifying expenditure incurred by a person, is 25 years beginning with the first day of the chargeable period of that person in which the qualifying expenditure was incurred.
3
The amount of the writing-down allowance is 4% of the qualifying expenditure.
4
The allowance is proportionately increased or reduced if the chargeable period is more or less than a year.
5
The total amount of any writing-down allowances made in respect of any qualifying expenditure, whether to the same or different persons, must not exceed the amount of the expenditure.
6
A person claiming a writing-down allowance may require the allowance to be reduced to a specified amount.
7
A person is not entitled to a writing-down allowance for the chargeable period in which a balancing allowance is made to him in respect of the qualifying expenditure.