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Box 49 Capital allowances at 20% on equipment, including cars with lower
CO2 emissions
Where you have spent more than £100,000 in a year on equipment, or (on
or after 6 April 2010) you have purchased a car with CO2 emissions of
160g/km or less, add all the expenditure together to make a ‘main pool’ of
costs.
Deduct:
• any Annual Investment Allowance (AIA) up to £100,000 (excluding any
expenditure on cars) that you are including in box 48
• any equipment that qualifies for 10% or 100% allowances
• any items which go into a separate pool.
Add the value of any main pool from the previous year, less the value of any
disposals you have made during the year.
You can then claim an allowance, also known as a writing down allowance
(WDA), of 20% of the remaining pool value (unless the expenditure is
‘special rate’ expenditure – see the note for box 50). For cars bought before
6 April 2009 see the notes for box 51 and Helpsheet 252.
For example, if you have spent £120,000 on general equipment and have
claimed £100,000 of this as an AIA, the balance of £20,000 qualifies for a
20% WDA of £4,000, which should be entered in box 49. The amount
remaining in the pool (in this example, £16,000) should be carried forward
to the following year – see Example 3 on page SEFN 15.
The main pool continues as long as the business continues. If all of the
expenditure is written off, the balance carried forward is nil.
Small pools allowance
If the balance of the main pool after claiming AIA, together with any
balance carried forward from any previous year, less any amount you got
from disposing of equipment you no longer use, is £1,000 or less, you may
claim that whole amount as a ‘small pools allowance’ instead of the 20%
allowance. The amount of any such small pools allowance should be entered
in box 49. The balance of the pool to carry forward will be nil.
Tax return: Self-employment (full) notes: Page SEFN 11
claim the whole or part of the amount as a ‘small pools allowance’, instead
of the 10% allowance. The amount of any such allowance should be
included in box 50. The balance of the pool carried forward is nil.
Box 51 Restricted capital allowances for cars costing more than
£12,000 – if bought before 6 April 2009
If you bought a car costing more than £12,000 before 6 April 2009 you
cannot claim more than £3,000 in any one year for it. The 20% writing
down allowance has to be restricted to a maximum of £3,000, which is
further reduced if there is any private use. Put each car costing more than
£12,000 in a separate ‘single asset pool’ and do a separate calculation for
each one for as long as you own it, or until 6 April 2014.
Private use
If you have a car which you use for business and for private use, the cost
or value of it has to go into a separate single asset pool. Calculate the
appropriate allowances due (but not AIA) depending on when the car was
bought, the cost and (if the car was bought on or after 6 April 2009) the
CO2 emissions. You must then reduce the allowances to the business
use proportion.
More information about capital allowances for cars and worked examples
can be found in Helpsheet 252 Capital allowances and balancing charges.
Example 2
In January 2009 Joe bought a car for £16,000. The car is used 60% for business and 40% for
private motoring. The car cannot go into the main pool and does not qualify for AIA.
Because the car cost more than £12,000 Joe can only claim capital allowances up to £3,000
(not 20% of its value because that would be more than £3,000).
2009–10 Car pool Allowance
Cost of car £16,000
Annual allowance
(£16,000 x 20% (£3,200) restricted to £3,000) (£3,000) £1,800 (60%)
Value carried forward £13,000
Because Joe uses the car 40% for private purposes the £3,000 is restricted to the 60%
business use proportion, or £1,800, which is entered in box 51.
Cars bought on or after 6 April 2009
For cars bought on or after 6 April 2009 the allowances you can claim
depend on the car’s carbon dioxide (CO2) emissions. Cars with
CO2 emissions:
• over 160g/km should be put into the special rate pool and will be eligible
for writing down allowances at 10%
• of 160g/km or less should go into the main pool and will be eligible for
writing down allowances at 20%
• of 110g/km or less qualify for a 100% first year allowance.
If you use your car both for business and private use, remember to include
the car in a single asset pool and restrict the allowance claimed to
reflect this.
Tax return: Self-employment (full) notes: Page SEFN 12
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