Capital Allowances Act 2001 section 460

Allocation of qualifying expenditure to pools

Section 460 sets out the rules governing when qualifying expenditure on mineral extraction can be allocated to a capital allowances pool.

• Qualifying expenditure must be allocated to the pool for the chargeable period in which it is incurred, or for a later chargeable period — never an earlier one.
• Once an amount of qualifying expenditure has been used to determine available qualifying expenditure for a particular chargeable period, it cannot be allocated to the pool again in a subsequent period.
• This prevents the same expenditure from being relieved more than once, while giving flexibility over the timing of the allocation.
• The flexibility to defer allocation to a later period mirrors the approach taken for plant and machinery allowances elsewhere in the Act, though in practice this is only likely to be relevant in unusual circumstances.