Part 2 Plant and machinery allowances

Chapter 9 Short-life assets

86 Short-life asset pool

(1)

Qualifying expenditure in respect of a short-life asset, if allocated to a pool, must be allocated to a single asset pool (a “short-life asset pool”).

(2)

If the final chargeable period for the short-life asset pool has not occurred before the F1relevant cut-off—

(a)

the pool ends at the F1relevant cut-off without a final chargeable period,

(b)

the available qualifying expenditure in the pool is allocated to the F2appropriate pool for the first chargeable period ending after the F1relevant cut-off, and

(c)

the asset ceases to be a short-life asset.

F3(3)

In this Chapter “the relevant cut-off” means—

(a)

if any of the qualifying expenditure incurred on the provision of the short-life asset was incurred before the designated day, the fourth anniversary of the end of the relevant chargeable period, and

(b)

in any other case, the eighth anniversary of the end of the relevant chargeable period.

(3A)

In subsection (3)—

“the designated day” means—

(a)

for corporation tax purposes, 1 April 2011, and

(b)

for income tax purposes, 6 April 2011;

“the relevant chargeable period” means—

(a)

the chargeable period in which the qualifying expenditure was incurred on the provision of the short-life asset, or

(b)

if the qualifying expenditure was incurred in different chargeable periods, the first chargeable period in which any of the qualifying expenditure was incurred.

(4)

For the purposes of subsection (2), the final chargeable period occurs before the F4relevant cut-off only if it ends on or before it.

F5(5)

In subsection (2)(b) “appropriate pool” means—

(a)

in the case of expenditure incurred on the provision of a car that is not a main rate car (as defined by section 104AA), the special rate pool, and

(b)

in any other case, the main pool.