capital allowance WDA

meibaker
meibaker Registered Posts: 481 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
hi, i am not sure where this £5000 comes from , please someone help,why bmw not use WDA 20% MANY THANK
THIS IS ON OSBORNE BOOK BUSINESS TAX P6.15
partnership business
single asset pool for car (BMW) WITH 25% private use by jo £!5,000
during accounting period, 12 months to 31/3/2010 following asset were acquired and disposed of
on 30/12/2009 a used audi car was bought for £25,000, 25% private use,emission level is 150g/km
on 30/12/2009 the BMW was sold for £14,000

exp car BMW exp car Audi
WDV bf 15,000
add acquisition
without FYA,AIA
Audi car (25% private use) 25,000

less disposale
BMW 14,000

WDA 20% (AUDI) 5,000X75%
BALANCE ALLOWANCE(BMW) 1,000X75%

Comments

  • slackda
    slackda Registered Posts: 460 Dedicated contributor 🦉
    The 5 K is the WDA 20% of the £25,000 , which is only 75% used for the business so you only get WDA of £3750

    hope that make sense on where the 5K is from.
  • Speedyf007
    Speedyf007 Registered Posts: 2 New contributor 🐸
    Capital Allowances

    On this exercise it says Exp Car (Audi), which I think it only means Single Pool. Expensive Car only applies new bought car b4 01.04.2009.

    Sabine
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    thanks slackda, find capital allowance quite confusing!
    sabine,the osborne book has put exp car (audi) for the pool, so is it wrong?
  • Speedyf007
    Speedyf007 Registered Posts: 2 New contributor 🐸
    capital allowances

    I think so, I only have started studying it myself.

    If it is an expensive pool, then you would have to reduce the £ 5,000 to £ 3,000 and then 75 % business use, look at Osbourne book page 3.10.

    I got confused myself and I am guessing this must be a single pool (25 % private).
    I hope I have not confused you even more.
    Sabine

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