capital allowance WDA

meibaker

hi, i am not sure where this £5000 comes from , please someone help,why bmw not use WDA 20% MANY THANK
THIS IS ON OSBORNE BOOK BUSINESS TAX P6.15
partnership business
single asset pool for car (BMW) WITH 25% private use by jo £!5,000
during accounting period, 12 months to 31/3/2010 following asset were acquired and disposed of
on 30/12/2009 a used audi car was bought for £25,000, 25% private use,emission level is 150g/km
on 30/12/2009 the BMW was sold for £14,000

exp car BMW exp car Audi
WDV bf 15,000
add acquisition
without FYA,AIA
Audi car (25% private use) 25,000

less disposale
BMW 14,000

WDA 20% (AUDI) 5,000X75%
BALANCE ALLOWANCE(BMW) 1,000X75%

slackda

The 5 K is the WDA 20% of the £25,000 , which is only 75% used for the business so you only get WDA of £3750

hope that make sense on where the 5K is from.

Speedyf007

Capital Allowances

On this exercise it says Exp Car (Audi), which I think it only means Single Pool. Expensive Car only applies new bought car b4 01.04.2009.

Sabine

meibaker

thanks slackda, find capital allowance quite confusing!
sabine,the osborne book has put exp car (audi) for the pool, so is it wrong?

Speedyf007

capital allowances

I think so, I only have started studying it myself.

If it is an expensive pool, then you would have to reduce the £ 5,000 to £ 3,000 and then 75 % business use, look at Osbourne book page 3.10.

I got confused myself and I am guessing this must be a single pool (25 % private).
I hope I have not confused you even more.
Sabine