Capital Allowances Act 2001 section 212ZC

Allowances and charges on expenditure in single asset pool

Section 212ZC requires companies with plant or machinery in a single asset pool that is used partly for Northern Ireland rate activity and partly for main rate activity to apportion any resulting allowances or charges between those two activities on a just and reasonable basis.

• Where a company's expenditure on an asset sits in a single asset pool and the asset is used for both NI rate activity and main rate activity, any writing-down allowances, balancing allowances, or balancing charges must be split between the two activities.
• The apportionment must be carried out on a basis that is just and reasonable, having regard to the relevant circumstances.
• A key factor in determining the apportionment is the extent to which the plant or machinery was actually used for NI rate activity compared with main rate activity during the chargeable period in question.
• This ensures that allowances and charges properly reflect the dual use of the asset, rather than being allocated entirely to one activity or the other.