Part 3Capital allowances
Plant and machinery: writing-down allowances and pools
81Small pools
1
CAA 2001 is amended as follows.
2
In section 56(2) (amount of allowances and charges), before paragraph (a) insert—
za
section 56A (small main pools and special rate pools),
3
After section 56 insert—
56AWriting-down allowances for small pools
1
This section applies in relation to the main pool and the special rate pool.
2
Where the amount by which AQE exceeds TDR is less than or equal to the small pool limit, the amount of the writing-down allowance to which a person is entitled for a chargeable period is the amount by which AQE exceeds TDR.
3
The small pool limit is £1,000, except that—
a
if the chargeable period is more or less than a year, it is proportionately increased or reduced, and
b
if the qualifying activity has been carried on for part only of the chargeable period, it is proportionately reduced.
4
A person claiming a writing-down allowance under this section may require the allowance to be reduced to a specified amount.
5
The Treasury may by order substitute for the amount for the time being specified in subsection (3) such other amount as it thinks fit.
6
An order under subsection (5) may make such incidental, supplemental, consequential and transitional provision as the Treasury thinks fit.
4
In section 59(1) (definition of unrelieved qualifying expenditure)—
a
after “that period” insert “(a)”, and
b
after “TDR” insert
, and
b
where section 56A(2) applies, the person does not claim a writing-down allowance of the amount by which AQE exceeds TDR.
5
The amendments made by this section have effect—
a
for corporation tax purposes, in relation to chargeable periods beginning on or after 1 April 2008, and
b
for income tax purposes, in relation to chargeable periods beginning on or after 6 April 2008.