Capital Allowances Act 2001 section 56A

Writing-down allowances for small pools

Section 56A allows businesses with small remaining balances in their main pool or special rate pool to write off the entire balance in one go, rather than claiming the standard percentage writing-down allowance over many years.

• Where the pool balance (qualifying expenditure less disposal receipts) is £1,000 or less, the full balance can be claimed as a writing-down allowance in that period
• The £1,000 threshold is adjusted proportionately if the chargeable period is longer or shorter than a year, or if the qualifying activity was carried on for only part of the period
• The person claiming the allowance may elect to reduce it to a specified lower amount rather than writing off the entire small pool balance
• The Treasury has the power to change the £1,000 threshold by order