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Use the Short-life asset summary template where a short-life asset election has been made, so that a qualifying asset is kept in its own single-asset pool rather than the main pool. This allows a balancing allowance to be given if the asset is sold or scrapped within the statutory cut-off, rather than the cost being relieved slowly through the main pool.

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When should I use this template?

Use it where the company has elected to treat an asset as a short-life asset (a de-pooling election). It is most useful for assets that are expected to be disposed of, or to fall in value quickly, within the cut-off period.

Before you start

A business type must be selected in the Business type section of the Return information template. If none is selected, the template shows a warning and cannot calculate.

Qualifying additions should be marked with the short-life asset tax treatment in Total fixed asset additions, and disposals analysed in Tangible fixed asset disposals, as this template reads its disposal proceeds from the disposals schedule.

How do short-life assets work?

A short-life asset election lets a company keep an asset in a single-asset pool instead of the main pool. If the asset is disposed of within the statutory cut-off period, the difference between the pool balance and the disposal proceeds is given as a balancing allowance (or, if proceeds exceed the balance, a balancing charge). If the asset is still held at the end of the cut-off period, the remaining balance is transferred back to the main pool, where it continues to be written down at the normal rate.

Step 1: Review the short-life assets

The template summarises each short-life asset, showing the pool balance and writing-down allowances for the period. Assets marked with the short-life asset treatment in Total fixed asset additions appear here.

Step 2: Deal with disposals

Disposal proceeds are pulled from the Tangible fixed asset disposals schedule (using the tax proceeds, or the accounting disposal proceeds where tax proceeds are nil). On disposal within the cut-off period, the template calculates the balancing allowance or balancing charge and reconciles the proceeds back to the disposals schedule.

Step 3: Transfers to the main pool

Where a short-life asset is not disposed of within the cut-off period, its remaining balance is transferred to the main pool, and the summary reflects the transfer.

What flows through to the rest of Corporation Tax?

The writing-down allowances, balancing allowances and balancing charges on short-life assets feed the capital allowances in the tax computation. Balances transferred out feed back into the main pool.

Where does the data come from?

  • Short-life assets are pulled from Total fixed asset additions (items given the short-life asset tax treatment), which draws on the Fixed Asset Register.
  • Disposal proceeds are pulled from Tangible fixed asset disposals (using the tax proceeds, falling back to the accounting disposal proceeds where tax proceeds are nil).
  • Writing-down rates come from Rates and allowances, and the business type from Return information.

Frequently asked questions

Why elect for short-life asset treatment?

So that a balancing allowance can be claimed if the asset is disposed of within the cut-off period, giving quicker relief than writing the cost down through the main pool.

What happens if I still hold the asset at the end of the cut-off?

The remaining balance is transferred to the main pool and continues to be written down at the normal rate.

Where do the disposal proceeds come from?

From the Tangible fixed asset disposals schedule; the template reconciles its proceeds back to that schedule.