Special rate pool

Expenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’.

Expenditure to be allocated to the special rate pool consists of expenditure incurred on:

1. •

   integral features, see below

2. •

   long life assets, see below

3. •

   thermal insulation of buildings used in a business

4. •

   new or second-hand cars with CO2 emissions of more than 50g/km (reduced from more than 110g/km in April 2021), and

5. •

   solar panels

CAA 2001, s 104A(1)

The annual writing down allowances available on the special rate pool is 6%.

Expenditure that would otherwise fall into the special rate pool is eligible for the AIA, with the exception