Capital Allowances Act 2001 section 461

Unrelieved qualifying expenditure

Section 461 explains how unrelieved qualifying expenditure is calculated and carried forward from one chargeable period to the next in a capital allowances pool.

• Unrelieved qualifying expenditure arises when available qualifying expenditure (AQE) exceeds total disposal values (TDV) for a chargeable period
• The amount carried forward is the excess of AQE over TDV, reduced by any writing-down allowance claimed for the period
• If no writing-down allowance is claimed, the full excess is carried forward
• No unrelieved qualifying expenditure may be carried forward from the final chargeable period, meaning the pool ceases to exist when the trade ends