Commentary on Sections Glossary Structure of this Part Overview
1444.This Chapter deals with allowances and charges on qualifying expenditure. There is no pooling of qualifying expenditure. Allowances may be balancing allowances or writing-down allowances. Writing-down allowances are given on a reducing-balance basis at rates of 10% on mineral asset expenditure and 25% in other cases. Disposal receipts may arise in respect of qualifying expenditure on the happening of certain events. Disposal receipts either restrict the allowances on that qualifying expenditure or result in balancing charges to recover excessive allowances. Balancing allowances are available on different kinds of qualifying expenditure in different circumstances.
1445.Section 417 sets out whether an allowance is available or a charge will be made for a chargeable period.
1446.Section 418 quantifies the allowance or charge.
1447.Section 419 defines the term “UQE” used in the previous two sections.
1448.Section 420 defines the term “disposal receipt” used in the earlier sections in terms of a “disposal value” to be brought into account.
1449.Section 421 and section 422 provide for the circumstances in which, and the chargeable period for which, a disposal value is to be brought into account in relation to qualifying expenditure.
1450.Section 423 and section 424 deal with the amount of a disposal value to be brought into account.
1451.Section 425 deals with an additional case, the receipt of a capital sum, in which a disposal value is brought into account in relation to qualifying expenditure.
1452.Sections 426 to 431 set out the periods in which a balancing allowance is available in relation to different kinds of qualifying expenditure.