Initial depreciation allowance for specified new plant and machinery enables an extra first-year deduction subject to recapture. Initial depreciation allowance grants an additional first-year deduction for specified new ships, aircraft, machinery or plant in selected industries, excluding office appliances and road transport vehicles, and including small-scale undertakings under a value threshold. The allowance is calculated as a percentage of actual cost, is excluded from written down value computation in later years, and is taken into account on disposal, demolition, or when cumulative depreciation would exceed cost; it also affects balancing charge and loss calculations and must be recorded beneath the asset's written down value in assessment orders.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Initial depreciation allowance for specified new plant and machinery enables an extra first-year deduction subject to recapture.
Initial depreciation allowance grants an additional first-year deduction for specified new ships, aircraft, machinery or plant in selected industries, excluding office appliances and road transport vehicles, and including small-scale undertakings under a value threshold. The allowance is calculated as a percentage of actual cost, is excluded from written down value computation in later years, and is taken into account on disposal, demolition, or when cumulative depreciation would exceed cost; it also affects balancing charge and loss calculations and must be recorded beneath the asset's written down value in assessment orders.
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