Capital Allowances Act 2001 section 470

Pooling of expenditure

Section 470 establishes the requirement to pool qualifying expenditure on mineral extraction in order to calculate writing-down allowances, balancing allowances, and balancing charges.

• Qualifying mineral extraction expenditure must be pooled before any allowances or charges can be determined.
• A separate pool is maintained for each trade in which the person has qualifying trade expenditure.
• All qualifying non-trade expenditure is grouped together into a single, separate pool.
• The pooling mechanism mirrors the approach used for plant and machinery and know-how allowances.