4: Capital Allowances for unincorporated businesses

Question 1

AIA

Answer 1

100% allowance on qualifying expenditure. Max £1m.

Not available for cars.

Question 2

Main Pool

Answer 2

18% WDA

Question 3

Special Rate Pool

Answer 3

6% WDA

• Cars with >50g k/m
• Long life assets (life > 25 years and total expenditure >£100k)
• Integral plant and machinery

Question 4

100% FYA

Answer 4

Such as energy saving technology and new zero emission vehicles

Question 5

Private use assets

Answer 5

• CAs on business elements of asset
• not pooled
• there will be a balancing charge/allowance on disposal

Question 6

Transfer as a going concern

Answer 6

Trade and assets can be transferred to connected parties at TDWV

Question 7

SBA

Answer 7

On new commercial structures and buildings after Oct 2018.

SBA is 3% p.a. of the cost on a straight line basis

Cost being construction costs or acquisition costs if bought from a developer

If buying 2nd hand, then SBA on org cost.