292 Meaning of “amount still unallowed”

One of the factors in determining the amount of a balancing allowance or a balancing charge in respect of machinery or plant is the amount of the capital expenditure incurred on the provision of the machinery or plant which is still unallowed at the time of the event giving rise to the allowance or charge. Section 292 defines “the amount still unallowed as at any time of any expenditure on the provision of machinery or plant” as the amount of that expenditure less the total of —

• any initial allowance made or deemed to have been made in respect of that expenditure to the person who incurred the expenditure,
• any wear and tear allowances previously made or deemed to have been made to that person in respect of the machinery or plant on the provision of which the expenditure was incurred,
• any scientific research allowance made to that person in respect of the expenditure, and
• any balancing allowance made to that person in respect of the expenditure.

It should be noted that by virtue of section 320(6) references in this section to allowances made include references to allowances which are carried forward because effect cannot be given to them in the assessment for the year to which they relate.

Relevant Date: Finance Act 2019