Registered Posts: 27
If the period of account is 15 month and your calculating FYA, how would you work this out?

For example: Arthur bought a car for £29,750 and 15% was private use. what would the allowance be?
FYA is only calulated for 12 months isn't ?

Sorry if this Doesn't make sense but I'm doing a practice exam and its hard to input the whole question. Any help will do.

• Registered, Tutor Posts: 243 Dedicated contributor 🌟 🐵 🌟
FYA is a rather misleading allowance as it has nothing to do with a "year". I like to call it the FTA (First Time Alowance); you get it when you buy the asset.

Presumably this is a low-emission car, so you claim 85% of £29,750
• Registered, Tutor Posts: 243 Dedicated contributor 🌟 🐵 🌟
Another point. I assumed that Arthur was self-employed. If he is an employee, ignore the 15%.
• AAT Student Posts: 320
I thought maybe @Pjdav meant with a 15 month CAP the CAP 1 would be months 1-12 when the FYA on 85% business use would apply assuming low emission vehicle and CAP 2 would be months 13-15.
• Registered Posts: 27
@PeterC & @adele69, thank you guys. I'm still confused as the answer says the allowance is 22,313?

How did they get that ? I worked it out to be 25,288

Just a bit more information, it says additions:27th April 2016,C02 75g/km & 15% private use. I've tried to attach a picture too.
• AAT Student Posts: 320
I see you're using a BPP book, is this the FA2016? (as I think I have this at home, I did the AQ2013 exam though)
• Registered, Tutor Posts: 243 Dedicated contributor 🌟 🐵 🌟
They appear to have calculated 29750 - 25% = 22313 despite the question stating that the low emission car has 15% usage. It rather looks like an error in the book.