Special rate pool and long life assets

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’. Such expenditure qualifies for a lower rate of writing down allowances at 6% per annum. This rate was 8% before 1 April 2019 (corporation tax) and 6 April 2019 (income tax).

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

• •‘integral features’ (CAA 2001, s 33A)
• •‘long life assets’ (CAA 2001, ss 90, 91)
• •thermal insulation of buildings used in a business (CAA 2001, s 28)
• •cars other than those with low CO2 emissions, and (CAA 2001, ss 104A(1)(e), 104AA)
• •solar panels (CAA 2001,