Section 28 | Main rate of writing-down allowances for expenditure on plant or machinery

(1)In section 56 of CAA 2001 (amount of plant and machinery allowances), in subsection (1) (which specifies the main rate of writing-down allowances), for “18%” substitute “14%”.

(2)The amendment made by subsection (1) has effect in relation to chargeable periods beginning on or after the relevant day, that is to say—

(a)for corporation tax purposes, 1 April 2026, and

(b)for income tax purposes, 6 April 2026.

(3)The amendment made by subsection (1) also has effect in relation to chargeable periods beginning before and ending on or after the relevant day but as if the reference to 14% were a reference instead to X%.

(4)For this purpose X is found by adding (18 x BRD/CP) to (14 x ARD/CP).

(5)Where X would be a figure with more than 2 decimal places, it is to be rounded up to the nearest second decimal place.

(6)In subsection (4)—

“BRD” means the number of days in the chargeable period before the relevant day,

“ARD” means the number of days in the chargeable period on and after the relevant day, and

“CP” means the number of days in the chargeable period.