Short Life Assets are capital items which aren’t expecting to keep for no more than eight years from the end of the accounting period in which they were acquired. These assets can be declared as Short Life and aren’t added to the general Capital Allowances pool – meaning that if they’re disposed of during the eight-year period, any loss arising on their scrapping or sale can be realised straight away, rather than impacting the general pool.
Small Pools Allowance allows you to write off the main or special rate pool (or both if the balance is £1000 or less) and can help prevent the need to make minimal capital allowance claims over a number of years. The Small Pool allowance can be claimed for new expenditure, and any brought forward residual balance (less any disposal proceeds of assets which have been sold or disposed of). The £1000 allowance is proportionally reduced for periods of less than a year.
If you’ve got assets that you’re not certain should be Short Life or want to make sure you’re making the most of your allowances, talk to one of our advisors today and find out how you can make the best decisions for your business.
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