Capital Allowances Act 2001 section 211

Single asset pool etc

Section 211 requires expenditure on plant or machinery that attracts a partial depreciation subsidy to be held in a single asset pool, and sets out what happens when a subsidy is first received after expenditure has already been allocated to another pool.

• Where a partial depreciation subsidy has been paid for plant or machinery, the related qualifying expenditure must be placed in a single asset pool rather than a main or special rate pool.
• If the expenditure is already sitting in another pool when a partial depreciation subsidy is first received, a disposal event is triggered in that pool at market value, and the same amount is reallocated to a new single asset pool.
• This transfer takes effect in the chargeable period in which the partial depreciation subsidy is paid.
• Once the expenditure is already in a single asset pool under this section, no further disposal event or reallocation occurs if an additional or changed partial depreciation subsidy is subsequently paid for the same plant or machinery.