Part 2

Plant and machinery allowances
Chapter 9

Short-life assets

Short-life assets provided for leasing
87
1
This section applies if—
a
plant or machinery is a short-life asset on the basis that it has been provided for leasing but will be used within the designated period for a qualifying purpose (see item 5 of the Table in section 84),
b
in a chargeable period ending on or before the four-year cut-off, the short-life asset begins to be used otherwise than for a qualifying purpose, and
c
the time when it begins to be so used falls within the first 4 years of the designated period.
2
If this section applies—
a
the short-life asset pool ends without a final chargeable period,
b
the available qualifying expenditure in the pool is allocated to the main pool for the chargeable period in which the asset begins to be used otherwise than for a qualifying purpose, and
c
the asset ceases to be a short-life asset.