96. Entitlement, liability, and amount of allowances and charges.

Whether a person is entitled to a writing-down allowance or a balancing allowance, or liable to a balancing charge, for a chargeable period1 is determined separately for each pool of qualifying expenditure2 and depends on:

  1.  

    (1)     the available qualifying expenditure in the pool for that period ('AQE'); and

  2.  

    (2)     the total of any disposal receipts3 to be brought into account in that pool for that period ('TDR')4.

If AQE exceeds TDR, the person is entitled to a writing-down allowance or a balancing allowance for the period5, and if TDR exceeds AQE, he is liable to a balancing charge for that