TTM09310 - Capital allowances: Exit from tonnage tax (P&M)
Qualifying expenditure: Assets other than expensive cars and long life assets
The qualifying expenditure that should go into a company’s capital allowance pool in respect of items of machinery or plant (other than expensive cars and long-life assets) is a percentage of the original cost of the asset.
The percentage varies according to length of time that the company owned the asset before leaving the tonnage tax regime, as follows:
| Length of period of ownership to date of exit | Percentage of original cost to go into capital allowance pool |
|---|---|
| Less than or equal to 1 year | 75 |
| 1 year and one day to 2 years | 55 |
| 2 years and one day to 3 years | 40 |
| 3 years and one day to 4 years | 30 |
| 4 years and one day to 5 years | 25 |
| 5 years and one day to 6 years | 15 |
| 6 years and one day to 7 years | 12 |
| 7 years and one day to 8 years | 10 |
| 8 years and one day to 9 years | 5 |
| More than 9 years | Nil |
References
| References | Link |
|---|---|
| FA00/SCH22/PARA85 (exit: plant & machinery) | TTM17466 |
| SI00/2303/REG4 (writing-down basis of plant & machinery) | TTM18004 |
| Qualifying expenditure on exit from tonnage tax | TTM09300 |