Main Rate Pool Additions

Most expenditure that does not qualify for the Annual Investment Allowance (AIA) will go into the main rate pool, on which an 18% written down allowance is due on a reducing balance basis.

How does the main rate pool work?

The value of all ‘plant and machinery’ is bought to the main rate pool, unless they fall into:

  • a single asset pool
  • the special rate pool

The general principle is that expenditure must be pooled for the purpose of calculating a person’s entitlement to writing-down allowances.

Certain assets must be added to a single-asset pool or to the special rate pool. All other expenditure is allocated to the main rate pool, where there is an ongoing calculation, with the value of the pool increasing as new expenditure is incurred but decreases as allowances are given, or sale proceeds are received.

Where first-year allowances are available, no writing-down allowances are given in the same period.

In contrast, the same expenditure may attract both an Annual Investment Allowance and writing-down allowance in the same period.

If you have any questions relating Capital Allowances, please feel free to give our team a call. 02071479940

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Special Rate Pool

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