Special rate pool

Expenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’.

Expenditure to be allocated to the special rate pool consists of expenditure incurred on:

1. •

   integral features, see below

2. •

   long life assets, see below

3. •

   thermal insulation of buildings used in a business

4. •

   new or second-hand cars with CO2 emissions of more than 50g/km (reduced from more than 110g/km in April 2021), and

5. •

   solar panels

CAA 2001, s 104A(1)

The annual writing down allowances available on the special rate pool is 6%.

Expenditure that would otherwise fall into the special rate pool is eligible for the AIA, with the exception of cars and certain other exclusions, see the Annual investment allowance (AIA) guidance note. In some cases, expenditure may also be eligible for FYAs, including a 50% FYA for special rate expenditure incurred by companies on or after 1 April 2023 , if it meets the necessary