Capital Allowances Act 2001

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 four-year cut-off—

(a) the pool ends at the four-year cut-off without a final chargeable period,

(b) the available qualifying expenditure in the pool is allocated to the main pool for the first chargeable period ending after the four-year cut-off, and

(c) the asset ceases to be a short-life asset.

(3) In this Chapter “the four-year cut-off” means the fourth anniversary of the end of—

(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 four-year cut-off only if it ends on or before it.