Capital Allowances

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi All,<BR><BR>I have recently started ACCA and was taught in my 2.3 Business Taxation class, that in Capital allowances for Plant and Manchinery calculation, you have a long life asset pool too, at AAT I was taught you had a general, short life asset, expensive car and private use asset pool only. Apparently for the long life asset pool the WDA is 6%, also remember guys that WDA is not calculated in the year of cessation (closing the business). We were assessed on this in December 04. The long life asset pool is only assessable at ACCA level, I think because I wasn't taught it before.<BR><BR>Regards,<BR><BR>gaffarn

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Capital Allowances

    Ummm<BR><BR>I did 2.3 ACCA and can't remember dealing with a long-life pool for assets charged at 6%. I know there is a IBA (Industrial Building's) which is charged at 4%??<BR><BR>Enlighten me regarding the Long Life Pool.<BR><BR>Thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Capital Allowances

    Long life pool was certainly covered in the June 05 2.3 syllabus as it was covered in mine. It's used for plant and equipment intended to last for at least 25 years from new and is written down at 6% a year instead of following normal capital allowance rules.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Capital Allowances

    For assets with an expected useful economic life of >25 years and costing more than 100K in the year of assessment. WDA 6%, FYA 12% for SME's in 1.7.97 - 2.7.98.

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