Unit 18, Capital Allowances for Ltd Companies

charliemansfield Registered Posts: 19 New contributor 🐸
I am using the BPP Text Book for unit 18.

I am doing Practice Exam Paper 5.

The Question is thus:

The following information is available for the 10 month period ended 31st January 2010.

Fixed Asset Purchases are:

Managing directors car (65% private usage) (CO2 emissions 190g/km). £24200

The answer in the back of the text book is 10/12 x 10% x £24200 = £2017.

However, cars over £12000 are considered expensive cars and therefore the WDA is the lower of 20% or £3000.

My question is does the £3000 need to be time apportioned as well as the 20%.

e.g 10/12 x £3000.

Also there is a 65% private usage. So does 65% of the WDA figure need to be added to the allowances or the whole WDA figure.

I appreciate this is a long question, thanks for taking the time to read it and i look forward to any feedback.

Many Thanks



  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    Hi Charlie bear with me its been a while.

    You may need to check when the car was bought (if after april 5th 2010 the new rules apply) there will not be 3000 as from then cars with high emission (190kgs) will be put in 10% pool and only 10% allowence allowed.

    Like i said if incorrect someone please let me know
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
    The £3000 is time apportioned. The period is 1.4.2009 to 31.1.2010 so car was purchased after 1.4.2009 therefore emmission over 160 g/km are WDA of 10%. The 2017 is lower than 3000x10/12 = 2500.

    No adjustment for personal use as MD is employee and will be taxed for his car in his Benefits in Kind.
  • charliemansfield
    charliemansfield Registered Posts: 19 New contributor 🐸
    Cheers Guys thank you very much for your help.
Privacy Policy