Where a person enters the cash basis for a tax year, any expenditure that is unrelieved qualifying expenditure for capital allowances purposes at the end of the period before the business starts using the cash basis (apart from for cars) and would qualify as a deduction within the cash basis is allowable as a deduction in calculating the profits of the trade in the first year of using the cash basis and the pool is reduced to zero (unless the assets are not fully paid for).

Any existing car pool remains and continues to operate.

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