If AQE exceeds TDR, then the person is entitled to a writing-down allowance of 25%, but:

the 25% increases or reduces for chargeable periods (see ¶106-100) that are longer or shorter than one year;

the 25% reduces proportionately if, in the case of qualifying trade expenditure (see ¶575-250) the trade is carried on for only part of the chargeable period;

the person claiming the allowance may require it to be reduced to a specified amount; and

no writing-down allowance is given in the final chargeable period.

Example

Apollo has a pool of qualifying expenditure brought down from the previous chargeable period, amounting to £20,000.

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