188体育

S56A CAA 2001

This new type of Writing Down Allowance (WDA) for small pools was introduced by FA 2008 and applies to the main pool and the special rate pool. It does not apply to single asset pools.

Where the total amount of a person鈥檚 qualifying expenditure (in the pool, or to be added to the pool), minus the total of any disposal receipts for the chargeable period - call this amount 拢x - is less than or equal to the 鈥榮mall pool limit鈥� of 拢1,000, the person is entitled to a WDA of that amount (that is, of 拢x). A person may either claim the small pools WDA (if the amount in the pool does not exceed the limit) or the normal percentage WDA. He cannot claim both WDAs in respect of the same pool in the same chargeable period.

If, in one year, 拢x were, for example, 拢1,200, then the person would be unable to claim the 鈥榮mall pools鈥� allowance that year. Instead, he could claim (say) a normal WDA of 20% = 拢240, leaving a balance of 拢960 to be carried forward to the next chargeable period. And, if for example, he incurred no new expenditure and made no disposals in the next chargeable period, he would be able to claim a small pools allowance of 拢960 then. There is further guidance and examples at CA23225.