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Home / Simons-Taxes /Business tax /Part B3 Capital allowances /Division B3.8 Dredging /Dredging capital allowances / B3.802 Dredging allowances—allowances available
Commentary

B3.802 Dredging allowances—allowances available

Business tax

Dredging allowances are either writing-down allowances or balancing allowances. There are no balancing charges.

Writing-down allowances

A person (P) is entitled to a writing-down allowance for a chargeable period if:

  1. Ìý

    •ÌýÌýÌýÌý qualifying expenditure has been incurred on dredging

  2. Ìý

    •ÌýÌýÌýÌý at any time in the chargeable period P is carrying on the qualifying trade for which the expenditure was incurred1, and

  3. Ìý

    •ÌýÌýÌýÌý that time is within the writing-down period

The writing-down period is the 25 years beginning with the first day of the chargeable period in which the qualifying expenditure was incurred2.

The writing-down allowance is four per cent of the expenditure3.

Where a chargeable period is more or less than one year, the amount of the writing-down allowance is increased or reduced proportionately4.

A person who claims a writing-down allowance may claim to reduce it to a specified amount5. Unless

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