TTM17631 - Schedule 22 Finance Act 2000: Part XI offshore activities - Para 111 capital allowances - proportionate reduction of allowances

FA00/SCH22/PARA111

(1) This paragraph applies where in an accounting period of the company an asset to which paragraph 110 applies is used for the purposes of the company’s offshore activities on some only of the days in the period.

(2) The amount of any writing-down allowance for that period in respect of expenditure incurred on the provision of the asset is restricted to the relevant proportion of the full allowance.

(3) Any writing-down allowance for a subsequent accounting period of the company in respect of such expenditure shall be calculated as if an allowance had been made of an amount equal to the full allowance, whether or not that amount (or any amount) was in fact claimed.

(4) For the purposes of this paragraph the full allowance means the allowance (if any) that would have been available apart from this paragraph.

(5) For the purposes of this paragraph the relevant proportion of the full allowance is given by:

OSD ÷ APD

where-

OSD is the number of days in the accounting period on which the asset was used for the purposes of the company’s offshore activities; and

APD is the number of days in that period.

References

Proportionate reduction of allowances	TTM11330