CA80300 - Dredging: Qualifying trades

CAA01/S484 (2), FA08/Schedule 27/Part 2/Para 34

For dredging allowance purposes, a ‘qualifying trade’ is a trade or undertaking the whole or part of which either

• consists of the maintenance or improvement of the navigation of a harbour, estuary or waterway; or
• would have been a ‘ qualifying trade’ for Industrial Buildings Allowance (IBA) purposes CA32200.

IBAs were withdrawn with effect from 1/6 April 2011. However, the IBA legislation about the definition of qualifying trade, parts of trades and the meaning of a highway concession continues to have effect after its repeal for the purposes of the dredging allowance legislation.

You may have a case where part of a trade satisfies the conditions for being a qualifying trade and part does not. In a case where expenditure is incurred partly for the purposes of a qualifying trade and partly for other purposes you need to apportion the expenditure. Treat the part of the trade that satisfies the conditions for being a qualifying trade as a separate trade for the purposes of making the apportionment CA80500.