Commentary on Sections Glossary Structure of Part 2 Overview
399.This Chapter provides rules for long-life assets. Expenditure on long-life assets must be allocated to a separate class pool. It is subject to a special rate of writing-down allowances of 6%.
400.Section 90 defines “long-life asset expenditure”. Section 91 defines “long-life asset”. Section 92 provides for this Chapter to apply to only part of the capital expenditure on plant or machinery.
401.Sections 93 to 96 provide that some fixtures, ships, railway assets and cars are not long-life assets.
402.Sections 97 to 100 provide, very broadly, that this Chapter does not apply to expenditure on long-life assets up to £100,000. Some types of expenditure are excluded from this.
403.Section 101 requires a class pool for long-life assets unless the expenditure is allocated to a single asset pool.
404.Section 102 limits writing-down allowances for long-life asset expenditure to 6% a year.
405.Sections 103 and 104 provide anti-avoidance rules. Section 103 provides that long-life assets do not cease to be treated as such when they are second-hand. Section 104 prevents avoidance by artificial acceleration of allowances.