{
  "url": "https://openlegislation.uk/capital-allowances-act-2001/section-56",
  "json_url": "https://openlegislation.uk/capital-allowances-act-2001/section-56.json",
  "legislation": "ukpga/2001/2",
  "legislation_title": "Capital Allowances Act 2001",
  "legislation_url": "https://openlegislation.uk/capital-allowances-act-2001",
  "path": "section/56",
  "kind": "section",
  "number": "56",
  "heading": "Amount of allowances and charges",
  "text": "(1) The amount of the writing-down allowance to which a person is entitled for a chargeable period is 14% of the amount by which AQE exceeds TDR.\n(1A) But in relation to qualifying expenditure incurred wholly for the purposes of a ring fence trade in respect of which tax is chargeable under section 330(1) of CTA 2010 (supplementary charge in respect of ring fence trades), the amount of the writing-down allowance to which a person is entitled for a chargeable period is 25% of the amount by which AQE exceeds TDR.\n(2) Subsections (1) and (1A) are subject to—\n(za) section 56A (small main pools and special rate pools),\n(a) section 104D (special rate expenditure: 6% or 10%), and\n(b) section 109 (overseas leasing: 10%).\n(3) If the chargeable period is more or less than a year, the amount is proportionately increased or reduced.\n(4) If the qualifying activity has been carried on for part only of the chargeable period, the amount is proportionately reduced.\n(5) A person claiming a writing-down allowance may require the allowance to be reduced to a specified amount.\n(6) The amount of the balancing charge to which a person is liable for a chargeable period is the amount by which TDR exceeds AQE.\n(7) The amount of the balancing allowance to which a person is entitled for the final chargeable period is the amount by which AQE exceeds TDR.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Word in s. 56(1) substituted (with effect in accordance with s. 28(2)-(6) of the amending Act) by Finance Act 2026 (c. 11), s. 28(1)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "S. 56(1A) inserted (with effect in accordance with s. 80(8)-(12) of the amending Act) by Finance Act 2008 (c. 9), s. 80(3)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 56(1A) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 326 (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 56(2) substituted (with effect in accordance with s. 80(8) of the amending Act) by Finance Act 2008 (c. 9), s. 80(4)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "S. 56(2)(za) inserted (with effect in accordance with s. 81(5) of the amending Act) by Finance Act 2008 (c. 9), s. 81(2)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "S. 56(2)(a) substituted (with effect in accordance with Sch. 26 para. 14 of the amending Act) by Finance Act 2008 (c. 9), Sch. 26 para. 4"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in s. 56(2)(a) inserted (with effect in accordance with s. 10(8)-(13) of the amending Act) by Finance Act 2011 (c. 11), s. 10(4)(b)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Word in s. 56(2)(a) substituted (with effect in accordance with s. 31(4)(8) of the amending Act) by Finance Act 2019 (c. 1), s. 31(3)(a)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2001/2/section/56",
    "retrieved_at": "2026-10-29T09:20:17.739129+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}