Capital Allowance – Short Life Assets – Depooling Election

As it says in the study notes and is discussed in the lectures it is very unlikely that an unincorporated trader will have expenditure in excess of the AIA limit in which case all expenditure will be fully relieved when incurred and no de-pooling election will be made.
If however total expenditure exceeded the AIA limit – as it may for a large company – then the AIA would be applied to other assets and the de-pooling election applied to the short life assets – this will allow a balancing allowance to be claimed on the sale of the short life assets which would not arise on the sale of other plant and machinery.

No – it is not that the election “can only be made” in this situation – as stated above it is the only time it would be worthwhile to make the election!