Capital Allowances Act 2001 section 74

Single asset pool

Section 74 requires certain cars to be placed in their own single asset pool rather than being grouped with other assets in the main or special rate pool.

• Cars costing more than £12,000 that are not qualifying hire cars must be allocated to a single asset pool, meaning their capital allowances are tracked separately from other plant and machinery.
• Cars that qualify for first-year allowances under section 45D (low CO₂ emission cars) are excluded from this requirement, even if they cost more than £12,000.
• The term "car" follows the extended definition given in section 81 of the Act, which may differ from the everyday understanding of the word.
• The Treasury has the power to increase the £12,000 threshold by statutory order, as well as the related monetary limits in sections 75 and 76.