Commentary on Sections Glossary Structure of Part 4 Overview
1281.This Chapter identifies who is entitled to writing-down allowances when and in what amount.
1282.Sections 372 and 373 give the general rules. Writing-down allowances are made to whoever holds the relevant interest. Allowances are made at 4% a year over a 25-year period. This is referred to as the writing-down period.
1283.Section 374 withdraws allowances if the building’s first use is not for husbandry.
1284.Sections 375 and 376 deal with transfers of the relevant interest after first use of a building. Section 375 gives the new owner entitlement to writing-down allowances. Section 376 sets out the rules for calculating the new owner’s allowances.
1285.Section 377 stops writing-down allowances being given if there is a balancing adjustment in a chargeable period.
1286.Sections 378 and 379 ensure that allowances do not exceed the qualifying expenditure and, conversely, that the final writing-down allowance does not leave some qualifying expenditure incapable of being used.