Taxes Consolidation Act 1997 section 303

Allowances for expenditure on dredging

Section 303 provides for capital allowances in respect of expenditure on dredging carried out for the purposes of a qualifying trade.

• An initial allowance of 10% and annual writing-down allowances of 2% (over 50 years) are available for capital expenditure on dredging incurred for a qualifying trade involving harbour navigation or dock operations.
• A balancing allowance for any unclaimed expenditure arises on permanent discontinuance of the trade, but a change in ownership does not count as a discontinuance.
• Capital contributions towards another person's dredging costs are treated as the contributor's own capital expenditure, with the recipient's qualifying expenditure reduced accordingly.
• Expenditure cannot qualify for dredging allowances if it already qualifies for allowances as expenditure on an industrial building or structure under Chapter 1 of Part 9.