Business Tax - Cap Allowance Query

akilahdaleakilahdale Posts: 29Registered
Bit baffled by this one;


Model Answer;

The sales managers car has some private use so it has to have a separate special rate pool. Is it correct that you would continue to write down the special rate pool even if the only thing within it is disposed of? In my answer I had a balancing allowance for it to close off the pool (with 75% actually claimed for business use). What am I missing?


  • David_SDavid_S Posts: 1Registered
    Hi there, I think (and if I'm wrong hopefully someone else will clear it up for us) that there are a few things you're getting a bit confused here.

    The car in question is in the special rate pool because it has CO2 emissions in excess of 110g/km.

    Assets in the special rate pool are not balanced off when they are disposed of, only when the business ceases trading.

    A private-use adjustment is only needed if the asset is being used by the proprietor of a sole trader business, or a partner in a partnership. Employee use or use in a company does not require a private use adjustment.
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