Capital Allowances Act 2001 section 212ZD

Effect of significant change in balance of use

Section 212ZD deals with what happens when there is a significant shift in how plant or machinery in a single asset pool is used between Northern Ireland rate activities and main rate activities, requiring the pool to be reset.

• Applies where expenditure is in a single asset pool and a change in circumstances would make the apportionment of allowances and charges between NI rate and main rate activities substantially different from what it was before
• Only triggered where no disposal value would otherwise arise for the period, and the market value of the asset at the end of the period exceeds available qualifying expenditure by more than £1 million
• When triggered, a disposal value must be brought into account in the single asset pool for the chargeable period in which the change occurs
• The company is then treated as having incurred new expenditure equal to that disposal value at the start of the next chargeable period, allowing the apportionment to be recalculated on a fresh basis