Commentary on Sections Glossary Structure of this Part Section 458: Amount of allowances and charges
1625.This section is based on section 530(2) and (3) of ICTA. 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. The amount of a writing-down allowance is adjusted if the chargeable period is more or less than a year and if the trade is carried on for only part of the chargeable period.
1626.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. See Change 38 in Annex 1.
1627.Subsections (5) and (6) set out the calculation of a balancing charge or balancing allowance for a chargeable period.