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Freeport Structure and Buildings Allowance

This section allows input and calculation of capital allowances on Structures and Buildings within a Freeport tax site.  

Click the link for more information on the allowance https://www.gov.uk/government/publications/enhanced-structures-and-buildings-allowances-in-freeports/enhanced-structures-and-buildings-allowances-in-freeports 

The CT600M Supplementary Pages are automatically generated based upon the information entered.   

The tab shows a grid where a list of the assets created is displayed showing 

  • Description – a description for the asset 
  • Location – the location of the Freeport where the expenditure on Plant and machinery was incurred.  
  • Allowance – the amount of the annual allowance for the period.  

New asset creation 

Select the New asset button to create a building or structure for a given Freeport location. 

Some of the data entry fields in this screen have a red asterisk alongside them which indicates that this information is required, and the information entered cannot be saved until they are completed. 

  • Description – enter a description for the asset. 
  • Location of Freeport – select the Freeport location from the drop-down selection list 
  • Date designated a Freeport – enter a date the site was designated a Freeport. This must be on or after 1/11/2021 to qualify for an allowance.  
  • Address of business operations – Ensure at least the first two lines of the address are completed. 
  • Date of first contract for construction – enter the date of the first contract for construction.  This cannot be before 1/11/2021. 
  • Date the building was brought into use – enter the date the building was first brought into use. This cannot be before 1/11/2021. 
  • Expenditure – cost of the qualifying expenditure 
  • Date of disposal – enter the date of disposal.  
  • Disposal proceeds – enter the amount of the disposal proceeds. 

Calculation 

  • Written down value b/fwd – this value is calculated after rolling forward to a new period where the asset was acquired in the previous period and until the asset is disposed of. It can be overwritten by an alternative value.   
  • Annual allowance on expenditure – this is automatically calculated based on the expenditure multiplied by the prevailing rate which is 10%. The allowance calculated is restricted based on: 
  • the number of days the building was in use within the period.  
  • After 10 years the allowance will be the lower of the written down value b/fwd and the annual allowance on the expenditure. 
  • Written down value c/fwd – this is automatically calculated. It is calculated as follows: 
  • In the period the asset was acquired it is the Expenditure – Annual allowance on expenditure 
  • In the period in which the asset is disposed of it is the written down value b/fwd – annual allowance on expenditure for the period     
  • The value will be nil where the asset has been fully written down over a period of 10 years.