Section 59: Unrelieved qualifying expenditure
300.This section is based on parts of sections 24(1) and 25(1) of CAA 1990. It defines the unrelieved qualifying expenditure a person carries forward from a chargeable period.
301.Subsection (3) provides that no unrelieved qualifying expenditure can be carried forward from the final chargeable period of a pool. This is implicit in CAA 1990. See Note 16 in Annex 2.
Example
Assume in the example above that P claims writing-down allowances of £3,500 x 25% = £875.
Then P carries forward £3,500 - £875 = £2,625 unrelieved qualifying expenditure to 2003-04.
P can also allocate to the pool for 2003-04 the balance of the first-year qualifying expenditure on the van on which first-year allowances were claimed (see section 58(5)): £2,500 - £1,000 = £1,500.
So assuming no other expenditure and no disposals P has for 2003-04 available qualifying expenditure (see section 57):
qualifying expenditure allocated to the pool for 2003-04 £1,500 unrelieved qualifying expenditure carried forward £2,625 ______ available qualifying expenditure £4,125
