Capital Allowances Act 2001 section 104C

Special rate pool

Section 104C requires that certain types of capital expenditure, known as special rate expenditure, must be allocated to a dedicated pool called the special rate pool, rather than the main pool.

• Special rate expenditure that is allocated to a pool must go into a separate class pool known as the special rate pool
• The expenditure must have been incurred wholly and exclusively for the purposes of a qualifying activity
• Expenditure that is required to be allocated to a single asset pool cannot go into the special rate pool
• The special rate pool attracts a lower annual writing down allowance than the main pool, reflecting the longer useful life of the assets involved