Taxes Consolidation Act 1997 section 292

Meaning of "amount still unallowed"

Section 292 defines how to calculate the "amount still unallowed" of capital expenditure on machinery or plant, which represents the remaining unrelieved expenditure after deducting all prior allowances.

• The amount still unallowed is the original qualifying expenditure on machinery or plant, reduced by all allowances previously claimed or deemed to have been claimed.
• Deductions include any initial allowance, wear and tear allowances for earlier chargeable periods, scientific research allowances, and any prior balancing allowance granted to the person who incurred the expenditure.
• Allowances that have been carried forward under section 320(6) because they could not be used in the year to which they related are also treated as allowances made, and therefore reduce the amount still unallowed.
• The amount still unallowed is a key figure in calculating balancing adjustments, as it is compared with the sale, insurance, salvage, or compensation proceeds when the machinery or plant is disposed of or ceases to be used.