CA23172 - Plant and Machinery Allowance (PMA): First Year Allowance (FYA): Super-Deduction and Special Rate (SR) Allowance: Disposal of assets on which super-deduction has been claimed – Miscellaneous provisions relating to disposals

FA21/S12(9)-(11)

Balance of Super-Deduction Expenditure: Pooling

CAA01/S58(5)(b) requires that where a first-year allowance is made in respect of an amount of first-year qualifying expenditure, the amount that may be allocated to a pool is limited to the balance of qualifying expenditure after the first-year allowance has been deducted. A negative balance arising where a super-deduction has been claimed in respect of super-deduction expenditure (see CA23163) is prevented from being allocated to a pool, and the amount of expenditure pooled is £nil.

Total Disposal Receipts

CAA01/S55 determines entitlement to a capital allowance, or liability to a balancing charge, in respect of a pool. As explained at CA23200, when determining that entitlement or liability the total disposal receipts (TDR) required to be brought into account are deducted from available qualifying expenditure (AQE). In order to ensure that disposal receipts which are subject to a balancing charge are not also deducted from AQE for the relevant pool to which the super-deduction expenditure was allocated, TDR is reduced by the relevant proportion (see CA23169 and CA23171) of the disposal value of the plant or machinery.

Deferment of Balancing Charges: Ships

A balancing charge in respect of a ship cannot be deferred under CAA01/S135(1) if the expenditure on the ship was super-deduction expenditure on which a super-deduction has been claimed. There is guidance on the deferment of balancing charges for ships available at CA25300.