Section 879B | Requirement to write down at a fixed rate

(1)This section applies if a company acquires or creates a relevant asset on or after 1 April 2019.

(2)The company is to be treated as having made an election under section 730 to write down the cost of the asset for tax purposes at a fixed rate.

(3)In its application in relation to the asset, section 731 (writing down at fixed rate: calculation) has effect as if in subsection (1)(a) for “4%” there was substituted “ 6.5% ”.

(4)The Treasury may by regulations amend subsection (3) so as to alter the percentage substituted for 4%.