CA80100 - Dredging: Outline

Dredging allowances write off capital expenditure incurred on dredging by a person carrying on a qualifying trade (CA80300).

The expenditure which qualifies for allowances is called qualifying expenditure and is written off at a rate of 4% on a straight-line basis over a period of 25 years.

If the trade is permanently discontinued or sold there is usually a balancing allowance that is equal to the expenditure not yet written off (this is subject to some exceptions - see CA81600). There are no balancing charges.