Capital Allowances Act 2001 section 206

Single asset pool etc

Section 206 requires that expenditure on plant or machinery used partly for a qualifying activity and partly for other purposes must be placed in its own single asset pool, and sets out what happens when an asset already in a pool begins to be used partly for non-qualifying purposes.

• Qualifying expenditure incurred partly for a qualifying activity and partly for other purposes must be allocated to a single asset pool rather than a main or special rate pool.
• When plant or machinery already in a pool begins to be used partly for non-qualifying purposes, a disposal value is brought into account in the existing pool and an equal amount is allocated as expenditure to a new single asset pool.
• The disposal value used when an asset moves to mixed use is its market value at that point.
• Where expenditure is already in a single asset pool under this provision, the asset beginning to be used partly for non-qualifying purposes does not trigger a final chargeable period or a disposal event.