Commentary on Sections Glossary Structure of Part 2 Section 164: Abandonment expenditure incurred before cessation of ring fence trade
609.This section is based on section 62A of CAA 1990. It provides rules for a special allowance for abandonment expenditure.
610.To qualify for the allowance, an election must be made (which is irrevocable).
611.The special allowance is given in the chargeable period of abandonment, effectively as a 100% capital allowance.
612.Section 165, provides a similar relief for expenditure in the three years following cessation of the ring fence trade.