Depreciation Allowance

Depreciation allowance only applied to Plant and Machinery, Industrial Building and / or Commercial Building.

Work-in-progress (in most of the cases, it refers to stock) is not qualified for IA and AA.

However, if you refers to some sort of installation of Plant and Machinery that is not completed at the year end, IA can still be claimed when capital expenditure had been incurred. However, as the Plant and Machinery is not in use at the end of the basis period, it is not qualified for AA.

Similar treatment for IBA if it is first hand. No IA for IBA if it is 2nd hand builidng and therefore if the IB is not in use at the end of the basis period, no IA and AA.

What do u mean for asset is work-in-progress?
Do you mean mould which is not yet complete for production?

In most of the case if the asset is still not yet complete, which means "not used in production of assessable profits chargable to HK". According to S. 16 (1), no IA or AA can be claimed.