Self Employed short 29 - Allowance for small balance of unrelieved expenditure

If the balance of qualifying expenditure in the main or special rate pool is £1,000 or less, you can claim a small pools allowance of up to the full amount instead of the WDA, you cannot claim both.

How to calculate a capital allowances pool balance

Start with the unrelieved expenditure in the pool at the end of the previous chargeable period. Add the balance of qualifying expenditure for which a claim to FYA was made in the previous chargeable period. Add all qualifying expenditure for the pool incurred in this chargeable period except for expenditure for which a claim to FYA is made.

Deduct the claim made to AIA. Deduct the total of all disposal values (usually receipts) for assets no longer used in the business. The result is the pool's balance of qualifying expenditure.

If you use equipment or cars for both business and private purposes, you must reduce the allowances you claim by the private use proportion. You must keep a separate pool of expenditure for each of the items you use for private purposes, this is called a single asset pool. The 'Allowance for small balance of unrelieved expenditure' does not apply to single asset pools.

More information about capital allowances for cars and worked examples can be found in Helpsheet 252 - Capital allowances and balancing charges or go to Capital allowances: detailed information.

Note: If you claim the trading income allowance, you cannot also claim Allowances for small balance or unrelieved expenditure, do not enter an amount here.