BrightTax Partnership Tax Returns now support the Single Asset Short-Life pool in the capital allowances calculation. This allows partnerships to make a short-life asset election for qualifying plant and machinery expected to be disposed of within eight years, enabling a balancing allowance to be claimed on disposal rather than the asset remaining in the main pool.

A short-life asset election is made for plant and machinery that a business expects to sell or scrap within eight years. By making the election and placing the asset in its own single asset pool:

• The asset is separated from the main pool — it does not affect main pool Writing Down Allowances.
• On disposal within eight years, a balancing allowance is available — giving immediate relief for any unrelieved expenditure.
• If the asset is not disposed of within eight years, it is transferred to the main pool at the closing balance.

1. Open the Partnership Tax Return in BrightTax and switch to Edit mode.
2. Navigate to the Capital Allowances section of the Partnership trade pages within the return.
3. Select Single Asset Short-Life Pool from the list of pool types.
4. Click Add Asset.
5. Enter the asset description, date of acquisition, and cost.
6. Enter any disposal details if the asset has been sold or scrapped during the period.
7. BrightTax calculates the Writing Down Allowance (18% main rate or 6% special rate as applicable) for active periods and the balancing allowance on disposal automatically.
8. The allowance is allocated to partners in their profit-sharing ratios and flows to each partner's SA100.
9. Save and run Check and Calculate.

Q: What is the time limit for the short-life asset election?

A: The election must be made within 12 months of the 31 January filing deadline for the tax year in which the expenditure was incurred.

Q: Can I use a short-life election for cars?

A: No. Cars cannot be placed in a short-life asset pool — they must go into either the main pool (emissions up to 50g/km) or special rate pool (over 50g/km), or a single asset pool for private use cars.

Q: What happens if the asset is still held after eight years?

A: If the asset has not been disposed of by the end of the eighth year after the chargeable period in which it was acquired, the closing balance of the single asset pool is transferred to the main pool.