Commentary

B3.333 Available qualifying expenditure—plant and machinery allowances

Business tax
Business tax | Commentary

B3.333 Available qualifying expenditure—plant and machinery allowances

Business tax | Commentary

B3.333 Available qualifying expenditure—plant and machinery allowances

As indicated at B3.332, the availability of writing-down allowances, balancing allowances and balancing charges for a chargeable period depends on the available qualifying expenditure 'AQE' in the pool and the total of any disposal receipts 'TDR' to be brought into account in that pool for that period (see B3.334). The general rule1 is that AQE is the sum of:

  1.  

    •     qualifying expenditure allocated to the pool in the chargeable period under the initial allocation rules described below, and

  2.  

    •     'unrelieved qualifying expenditure' (see below) brought forward from the pool from the previous chargeable period

For the meaning of chargeable period, see B3.102.

There are other specific provisions which direct qualifying expenditure to be allocated to a pool and provisions which exclude certain expenditure2. They are dealt with in the appropriate articles elsewhere in this Division.

Small pools

Where the written-down value of a pool is no more than £1,000, businesses may claim a writing-down allowance equal to the value of the pool3, although the claim may be reduced if

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