BTC June 2010

jewels.p

In my Osbourne Book it states that if you buy a car after 1/4/09 with emissions of 160g/km or less it goes in the Main Pool. So how come in the June 2010 Answers it is in a separate pool?

As if things arent confusing enough.

reddwarf

160 g/km would mean it would go in a separate pool and have only 10% wda (lower wda because of the high emmissions). After April 09 the government are trying to dissuade people from buying cars with high emmissions sothat why they have lower WDA.

I think this part is not set out very clearly in Osborne...(normally the are good!).

jewels.p

But the emissions is less than 160g/km it is 150g/km in the June 2010 Paper?

reddwarf

I had a quick look - is it section 1 question ? if so the car has private useage so always goes in separate pool (doesn't matter what emissions) - WDA is 20% but Capital allowance is the business use % only...

reddwarf

Jewels are the different rules for Ltd Co's Capital Allowanes and sole trader/partnerships CA clear because I've only just cottoned on to cars (see BTC revision thread) for empolyees of Ltd Co's with private use don't have an adjustment made to the capital allowance for business use.

jewels.p

reddwarf wrote: »

I had a quick look - is it section 1 question ? if so the car has private useage so always goes in separate pool (doesn't matter what emissions) - WDA is 20% but Capital allowance is the business use % only...

Yeah it's Section 1 Question 1. I didnt know that. Where did you read that if it has any private usage it goes in a separate pool no matter what emissions?

jewels.p

reddwarf wrote: »

Jewels are the different rules for Ltd Co's Capital Allowanes and sole trader/partnerships CA clear because I've only just cottoned on to cars (see BTC revision thread) for empolyees of Ltd Co's with private use don't have an adjustment made to the capital allowance for business use.

I wrote this in my notes. Yes that's right only adjust for private usage in individuals or partnerships NOT companies (directors or employees)

reddwarf

If the proprietor of a self employed business uses a car for private as well as business purposes, then the car is treated as a separate single asset so that the private element of any FYA (low emission cars only) or WDA can be adjusted in respect of that private use.

googled it!

I can't remember where in Osborne it is!!

Confusing isn't it!

jewels.p

Ok thanks I have written that on my notes. Did you see my thread on N.I Class 4's (changing the subject) Was just needing someone to confirm my answer. Since we are the study buddy's for BTC thought you might know!

jewels.p

reddwarf wrote: »

I had a quick look - is it section 1 question ? if so the car has private useage so always goes in separate pool (doesn't matter what emissions) - WDA is 20% but Capital allowance is the business use % only...

I know we don't adjust private usage for Businesses Cars but do we still put it in a separate pool?

reddwarf

No not unless there is some other reason for a separate pool e.g. expensive car bought before 1 april 09 or high emmission

jewels.p

I am never gonna remember all the bloomin rules for B Tax! :sad:

reddwarf

Agree!