Capital Allowances Act 2001 section 53

Pooling of qualifying expenditure

Section 53 requires qualifying expenditure to be grouped into pools as the basis for calculating writing-down allowances, balancing allowances, and balancing charges.

• Qualifying expenditure must be allocated to pools before any allowances or charges can be calculated.
• Pools are the mechanism used to determine entitlement to writing-down allowances and balancing allowances, and liability to balancing charges.
• Where a person carries on more than one qualifying activity, each activity must have its own separate pool or pools.
• Expenditure relating to different qualifying activities must never be mixed together in the same pool.