Part 2

Plant and machinery allowances
Chapter 9

Short-life assets

Short-life asset pool
86
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 relevant cut-off—
a
the pool ends at the relevant cut-off without a final chargeable period,
b
the available qualifying expenditure in the pool is allocated to the appropriate pool for the first chargeable period ending after the relevant cut-off, and
c
the asset ceases to be a short-life asset.
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—
  1. for corporation tax purposes, 1 April 2011, and
  2. for income tax purposes, 6 April 2011;
- “
the relevant chargeable period
” means—
  1. the chargeable period in which the qualifying expenditure was incurred on the provision of the short-life asset, or
  2. 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 relevant cut-off only if it ends on or before it.
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.
Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Words in s. 86(2)(b) substituted (with effect in accordance with Sch. 11 paras. 26, 27, 28(1) to the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 20(2) (with Sch. 11 paras. 30-32)
S. 86(5) inserted (with effect in accordance with Sch. 11 paras. 26, 27, 28(1) to the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 20(3) (with Sch. 11 paras. 30-32)
S. 86(3)(3A) substituted for s. 86(3) (19.7.2011) by Finance Act 2011 (c. 11), s. 12(2)(b)
Word in s. 86(2) substituted (19.7.2011) by Finance Act 2011 (c. 11), s. 12(2)(a)
Word in s. 86(4) substituted (19.7.2011) by Finance Act 2011 (c. 11), s. 12(2)(c)
Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)