Related Commentary  Related HMRC Manuals

731(1)  If an election is made under section 730 for writing down at a fixed rate, a debit equal to the lesser of–

(a)4% of the cost of the asset, and

(b)the balance of the tax written-down value,

must be brought into account for tax purposes in each accounting period beginning with that in which the relevant expenditure is incurred.

731(2)  If the accounting period is less than 12 months, the amount mentioned in subsection (1)(a) must be proportionately reduced.

731(3)  In this section “the cost of the asset” means the cost recognised for tax purposes.

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