Part 2Plant and machinery allowances

Chapter 5Allowances and charges

Pooling

54The different kinds of pools

1

There are single asset pools, class pools and the main pool.

2

A single asset pool may not contain expenditure relating to more than one asset.

3

The following provide for qualifying expenditure to be allocated to a single asset pool—

  • section 74 (car above the cost threshold);

  • section 86 (short-life asset);

  • section 127 (ship);

  • section 206 (plant or machinery provided or used partly for purposes other than those of qualifying activity);

  • section 211 (payment of partial depreciation subsidy);

  • section 538 (contribution allowances: plant and machinery).

4

A class pool is a pool which may contain expenditure relating to more than one asset.

5

The following provide for qualifying expenditure to be allocated to a class pool—

  • section 101 (long-life assets);

  • section 107 (overseas leasing).

6

Qualifying expenditure may be allocated to the main pool only if it does not fall to be allocated to a single asset pool or a class pool.