Business tax book P3.22 3.5

kelly2021
kelly2021 Registered Posts: 16
Hello

Can anyone help me with this question please?

The CAP is from 1/4/2020 to 31/1/2021. I understand the limit for 1/4/2020 - 31/12/2020 is £750000 and the limit for 1/1/2021 - 31/01//2021 is £16666.

However plant of £790834 was purchased before 1/1/2021, the CAP of which has limit of £750000, from my understand, £40834 should be included in the main pool.

Can anyone please advise why £24167 should be included in the main pool?

Thank you very much!

Comments

  • PeterC
    PeterC Registered, Tutor Posts: 226
    The total limit is £766,667 (750,000 + 16,667)
    790,834 - 766,667 = £24,167

    There is no additional limit on the expenditure in the period with the more generous maximum allowance
  • kelly2021
    kelly2021 Registered Posts: 16
    Hi @PeterC ,thanks a lot! That’s really helpful.
  • PeterC
    PeterC Registered, Tutor Posts: 226
    You're welcome
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