Commentary on Sections Glossary Structure of Part 2 Overview
385.This Chapter provides single asset pools for some expenditure. A person elects for expenditure to be allocated to a pool of this type. Doing so means a disposal event within, broadly, four years gives rise to a balancing allowance (or charge). This gives capital allowances for the net cost of plant or machinery with a life of less than about four years earlier than if the expenditure were allocated to the main pool.
386.Section 83 defines short-life asset and section 84 gives a Table of cases in which treatment as a short-life asset is ruled out.
387.Section 85 deals with the election.
388.Section 86 sets up the single asset pool. Section 87 provides special pooling rules for leased assets.
389.Section 88 prevents avoidance by sale at under value and section 89 deals with the sale of a short-life asset to a connected person.