Main pool part 1

In this lesson

1. 0:00 Main pool and special rate pool explained
2. 0:23 Why special rate pool assets get priority
3. 0:44 Main pool calculation methodology
4. 2:03 Disposal proceeds cap at original cost
5. 2:45 Main pool calculation worked example

About this lesson

You'll discover which assets go into the main pool, how to calculate the annual allowance step-by-step (brought forward value, add purchases, deduct disposals, apply the 18% rate), and why the main pool is treated differently from the special rate pool. This is essential for TX (Taxation) and ATX (Advanced Taxation) papers, where capital allowances directly reduce your taxable profits and you need to handle multiple asset pools accurately. The lesson walks through the mechanics of the main pool calculation with a worked example. You'll see how to handle disposal proceeds (which are capped at the original cost of the asset), add new purchases during the year, and arrive at the tax written down value carried forward. Understanding this foundation is critical because capital allowances are one of the most testable areas in taxation, and examiners expect you to apply the rules confidently across different scenarios. Once you've mastered the main pool, you'll be ready to tackle special rate pool assets and first year allowances in the next parts of this topic.

Duration: 4m