CBT Practice Assessment 2 Task 3 (Capital Allowances)

Merav

Hi,
Can anyone tell me why a WDA has been calculated on a disposed asset (Car 178 g/km) and why we haven't got a blancing allowance on that asset?

douglasstroud

Hi
I don't know what the full question is but from what you describe it would seem that the car must be in the special rate pool so you should claim 8% WDA on the pool and not the car, the balancing allowance would only be due if the car was in a single asset pool or if the business ceased to trade.

Mandi

Hi I have just completed my Assessment 2 and came across this. It gives you a General Pool Balance and a sales manager car pool balance. You then dispose of the Sales Manager car which I thought you would have a balancing allowance, however the answer has claimed WDA. Reading you would assume that the same sales manager car was sold I must be missing something or the answer is wrong

Mandi

Just found the reason in another question


By "de-pooling" I believe you mean that the relevant item has been placed in a single asset pool (CA23210). This has not happened to the Sales Manager's car, which should be in the special rate pool. It just so happens that there is only one asset in the special rate pool. You might be thinking that this car should be in a single asset pool because of the private use but that would only apply if it was used privately by the proprietor. The Sales Manager is an employee. This is a common cause of confusion for AAT students, which your examiner likes to exploit.