Taxes Consolidation Act 1997 section 287

Wear and tear allowances deemed to have been made in certain cases

Section 287 provides for deemed wear and tear allowances to ensure the correct written-down value of machinery and plant is used in later periods.

• Where no wear and tear allowance, or a reduced allowance, is given, a full "normal" allowance is deemed to have been made for certain purposes.
• The deemed allowance applies when calculating the written-down value of motor vehicles and when applying the overall cap on allowances.
• The "normal wear and tear allowance" assumes full taxable trading use, no exemptions, proper claims, and no subsidies.
• Special rules apply to companies that were temporarily outside the charge to corporation tax.

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