Commentary on Sections Glossary Structure of this Part Section 472: Amount of allowances and charges
1679.This section is based on section 520(4) and (6) of ICTA. It determines the amount of a writing-down allowance.
1680.Subsections (1) to (3) set out the calculation of a writing-down allowance for a chargeable period. The rate at which writing-down allowances are given is 25% per year on a reducing-balance basis. The amount of a writing-down allowance is adjusted if the length of the chargeable period is more or less than a year and if the trade was carried on for only part of the chargeable period.
1681.There is a minor change. Subsection (4) allows a person to claim a writing-down allowance of less than the full entitlement for the chargeable period. There is nothing for this in CAA 1990. See Change 38 in Annex 1.
1682.Subsections (5) and (6) set out the calculation of a balancing charge or allowance for a chargeable period.