Section 56 | Amount of allowances and charges

(1)The amount of the writing-down allowance to which a person is entitled for a chargeable period is 14% of the amount by which AQE exceeds TDR.^F1

(1A)But in relation to qualifying expenditure incurred wholly for the purposes of a ring fence trade in respect of which tax is chargeable under section 330(1) of CTA 2010 (supplementary charge in respect of ring fence trades), the amount of the writing-down allowance to which a person is entitled for a chargeable period is 25% of the amount by which AQE exceeds TDR.^F2F3

(2)Subsections (1) and (1A) are subject to—^F4

(za)section 56A (small main pools and special rate pools),^F5

(a)section 104D (special rate expenditure: 6% or 10%), and^F6F7F8

(b)section 109 (overseas leasing: 10%).

(3)If the chargeable period is more or less than a year, the amount is proportionately increased or reduced.

(4)If the qualifying activity has been carried on for part only of the chargeable period, the amount is proportionately reduced.

(5)A person claiming a writing-down allowance may require the allowance to be reduced to a specified amount.

(6)The amount of the balancing charge to which a person is liable for a chargeable period is the amount by which TDR exceeds AQE.

(7)The amount of the balancing allowance to which a person is entitled for the final chargeable period is the amount by which AQE exceeds TDR.