Find UK Accountant

I'm an accountant Get listed
Find an accountant Get a free quote

Capital Items – short life assets

Created at
Shaikh & Co Ltd

Capital items that you expect to keep for no more than eight years from the end of the accounting period in which you acquired them can be treated as short life assets by making a relevant election.

This means the asset is not added to the general capital allowances pool and, if disposed of within this period, then the loss on scrapping or sale will be realised straight away rather than affecting the general pool.

If the asset is still held after the end of this period then it is automatically added back into the general pool.