Capital Allowances Act 2001 section 212O

When there is excess of allowances in pool: amount of excess

Section 212O determines when a company or partnership has an excess of capital allowances in a plant and machinery pool, how to calculate that excess, and how surpluses in other pools can reduce it.

• An excess of allowances arises in a pool when the pool allowances (PA) exceed the portion of the business sale value attributed to that pool (BSVP)
• Any pool with such an excess is termed a "relevant pool" and is subject to the restriction rules in section 212P
• The excess is calculated as the difference between PA and BSVP for the relevant pool
• If another pool has a surplus (where BSVP exceeds PA), that surplus can be used to reduce the excess in the relevant pool, provided it has not already been used against another relevant pool or under section 212Q