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On the disposal of a wasting asset, the full amount of the otherwise allowable expenditure in respect of the asset is not deductible in computing the chargeable gain or allowable loss but is restricted. The expenditure is said to be 'wasted' over the life of the asset. For this purpose, it is assumed that:

1. Ìý

   (a)ÌýÌýÌýÌý the original cost of the asset, after deduction of the residual or scrap value, is written off at a uniform rate over its predictable life¹, and

2. Ìý

   (b)ÌýÌýÌýÌý any expenditure on enhancement of the value of the asset (see C2.206), or in respect of preserving or defending the owner's title to it (see C2.207), is written off at a uniform rate over the period from the date on which the expenditure is first reflected in the state or nature of the asset to the end of the predictable life of the asset².

It is assumed that an equal daily amount is written off day by day³.

Where the asset is