Capital Allowances Act 2001 section 57

Available qualifying expenditure

Section 57 defines what makes up the "available qualifying expenditure" in a capital allowances pool for any given chargeable period, including what is added in, what is carried forward, and what is excluded.

• The basic pool balance comprises new qualifying expenditure allocated to the pool for the period plus any unrelieved expenditure carried forward from the previous period.
• Additional amounts may be added to the pool under specific provisions, including demolition costs, short-life asset transfers, overseas leasing adjustments, ship pooling rules, oil decommissioning expenditure, mixed-use adjustments, and partial depreciation subsidies.
• Certain expenditure is excluded from the pool, notably where double relief would otherwise arise, where anti-avoidance rules apply (including rules on fixtures, oil field transfers, transfer and long funding leasebacks, and general anti-avoidance provisions), and where decommissioning allowance restrictions are in force.
• The general rule is further subject to special timing rules for expenditure on plant or machinery leased under a finance lease, which may affect when expenditure is allocated to a chargeable period.