Capital Allowances Act 2001 section 212ZB

Single asset pool etc

Section 212ZB requires that where a company carries on both a Northern Ireland rate activity and a main rate activity, and capital expenditure on plant or machinery serves both purposes, that expenditure must be held in a single asset pool, and sets out the consequences when an asset's use changes between the two activities.

• Where qualifying expenditure on plant or machinery is incurred partly for a Northern Ireland rate activity and partly for a main rate activity, it must be allocated to a single asset pool rather than a class pool.
• If plant or machinery already in a pool begins to be used for both activities (having previously been used for only one), a disposal value is brought into account in the original pool and an equal amount is allocated as expenditure to a new single asset pool for that chargeable period.
• Once the asset is in a single asset pool under these rules, a mere change in the proportion of use between the Northern Ireland rate activity and the main rate activity does not trigger a disposal event.
• These provisions ensure that assets straddling both activities are tracked individually, allowing the correct rate of corporation tax to be applied to the allowances attributable to each activity.