Capital Allowances Act 2001 section 104A

Special rate expenditure

Section 104A defines the types of capital expenditure that are classified as "special rate expenditure" and must be allocated to the special rate pool, which attracts a lower rate of writing down allowance than the main pool.

• Special rate expenditure includes spending on thermal insulation, integral features of buildings, long-life assets, certain cars that are not main rate cars, cushion gas, and solar panels.
• Different start dates apply depending on the type of expenditure: thermal insulation, integral features, and long-life assets from April 2008; non-main-rate cars from April 2009; cushion gas from April 2010; and solar panels from April 2012.
• Each start date differs slightly depending on whether the business pays corporation tax (1 April) or income tax (6 April).
• Long-life asset expenditure incurred before April 2008 is also treated as special rate expenditure if it is first allocated to a pool in a chargeable period beginning on or after that date.