These are the conditions to be satisfied for a person to claim writing down allowance for a chargeable period.
If there has been no sale or transfer of the relevant interest
since the building was brought into use the annual rate of writing
down allowance is 4% of the qualifying expenditure attributable to
the dwelling house. If the chargeable period is more or less than a
year the 4% is proportionately increased or reduced. For example,
if the chargeable period is 15 months long the rate of WDA for that
chargeable period is 5% (= 4% x 15/12).
This is how you calculate WDAs after the relevant interest
has been sold or transferred. Work out the length of the period
from the date of the sale or transfer to the end of the period of
25 years beginning with the date on which the dwelling house was
first used. The residue of qualifying expenditure after the sale or
transfer is multiplied by the length of the chargeable period
divided by that length of time. The writing down allowance for a
chargeable period is limited to the residue of qualifying
expenditure attributable to the dwelling house. The
residue of qualifying expenditure attributable to
the dwelling house is the qualifying expenditure attributable to
the dwelling house still to be written off.
