Capital Allowances Act 2001

57 Available qualifying expenditureU.K.
This section has no associated Explanatory Notes

(1)The general rule is that a person’s available qualifying expenditure in a pool for a chargeable period consists of—

(a)any qualifying expenditure allocated to the pool for that period in accordance with section 58, and

(b)any unrelieved qualifying expenditure carried forward in the pool from the previous chargeable period under section 59.

(2)A person’s available qualifying expenditure in a pool for a chargeable period also includes any amount allocated to the pool for that period under—

  • section 26(3) (net costs of demolition);

  • section 86(2) or 87(2) (allocation of expenditure in short-life asset pool);

  • section 111(3) (overseas leasing: standard recovery mechanism);

  • section 129(1), 132(2), 133(3) or 137 (provisions relating to operation of single ship pool and deferment of balancing charges in respect of ships);

  • [F1section 161C(2)(decommissioning expenditure incurred by person carrying on trade of oil extraction);]

  • section 165(3) ([F2general decommissioning expenditure] incurred after cessation of ring fence trade);

  • section 206(3) (plant or machinery used partly for purposes other than those of the qualifying activity);

  • section 211(4) (partial depreciation subsidy paid).

(3)A person’s available qualifying expenditure does not include any expenditure excluded by—

  • section 8(4) or 9(1) (rules against double relief);

  • [F3section 70DA (transfer and long funding leaseback);]

  • [F4sections 165A to 165E (restrictions on allowances: anti-avoidance);]

  • section 166(2) (transfers of interests in oil fields: anti-avoidance);

  • section 185(2), 186(2)[F5, 186A(2)] or 187(2) (restrictions where other claims made in respect of fixture);

  • section 218(1), [F6218ZA(1) or (3),] F7... 228(2)[F8, 229A], 242(2), or 243(2) (general anti-avoidance provisions).

(4)Subsection (1) is also subject to section 220 (allocation to chargeable periods of expenditure incurred on plant or machinery for leasing under finance lease).

Textual Amendments

F1Words in s. 57(2) inserted (with effect as mentioned in Sch. 20 para. 9(1)-(4)(8) of the amending Act) by Finance Act 2001 (c. 9), s. 68, Sch. 20 para. 5(2)

F2Words in s. 57(2) substituted (with effect in accordance with s. 109(7) of the amending Act) by Finance Act 2008 (c. 9), Sch. 34 para. 4

F3Words in s. 57(3) inserted (with effect in accordance with Sch. 32 para. 17 to the amending Act) by Finance Act 2009 (c. 10), Sch. 32 para. 14

F4Words in s. 57(3) inserted (with effect in accordance with Sch. 32 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 32 para. 4

F5Words in s. 57(3) inserted (with effect in accordance with Sch. 10 para. 12 of the amending Act) by Finance Act 2012 (c. 14), Sch. 10 para. 8

F6Words in s. 57(3) inserted (with effect in accordance with Sch. 9 para. 9(1)(3) of the amending Act) by Finance Act 2012 (c. 14), Sch. 9 para. 2

F7Word in s. 57(3) omitted (with effect in accordance with Sch. 20 para. 6(19) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 20 para. 6(4)

F8Words in s. 57(3) inserted (with effect in accordance with Sch. 32 para. 22 to the amending Act) by Finance Act 2009 (c. 10), Sch. 32 para. 20