Business Tax - Cap Allowance Query

akilahdale
akilahdale Registered Posts: 28 Regular contributor ⭐
in Business Tax
Bit baffled by this one;

Info;


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?

Comments

  • David_S
    David_S Registered Posts: 1
    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.
  • JEA
    JEA Registered Posts: 3 New contributor 🐸
    Ditto David_S, this is what I thought but it's been near impossible to see a working example in the text books as they all concentrate on either short life asset pools (where there's an allowance on disposal) or conveniently they take advantage of the £1000 allowance to close the pool.

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