07: Other allowances

The new allowance for the renovation of business premises came into effect from 11 April 2007. The provisions give 100% relief on the conversion or renovation of properties in designated disadvantaged areas that have been vacant for at least a year.

Capital expenditure on research and development carried out for a trade qualifies for a 100% allowance that is deducted from trading profits.

Expenditure on patent rights and know-how qualify for a 25% writing-down allowance on similar lines to plant and machinery. Companies cannot claim these allowances as they have different rules for intellectual property.