Capital Allowances Flashcards
Items qualifying for FYA? (5)
1) New zero emission good vehicles
2) New low emission cars (=< 50 g/km)
3) Expenditure on new plant and machinery
4) Electric charge point equipment
5) All research and development capital expenditure (Excluding land)
Is FYA time apportioned?
No
What is the WDA and is it time apportinioned?
- 18%
- Yes the WDA is time apportioned accordingly
Which pool do second hand low/zero emission cars go?
Main pool
Which assets are included in the special rate pool (6%)? (6)
1) Long life assets
2) Integral features
3) Thermal Insulation
4) Solar panels
5) High emissions cars
6) Cars with CO2 emissions > 100 g/km
What items are classed as integral features for the special rate pool (6%)? (5)
1) Electrical systems (Including lighting systems)
2) Cold water systems
3) Space or water heating systems, Ventilation systems
4) Lifts / escalators / moving walkways
5) External solar shading
What is a long life asset?
Long life assets are plant and machinery with an expected working life of at least 25 years and total cost in a 12 month accounting period of over £100,000
Cannot be:
- Cars
- Ships
- Plant and machinery used in retail shops, showrooms, offices or houses
What is a short life asset?
A short life asset are main pool assets that are expected to be used not more than 8 years.
A de-pooling election is used to put them in their own pool (Will save tax)
Which of AIA, WDA or FYA are available in the final period of account?
None
What qualifies for the SBA allowance? (2)
1) Buildings including offices, retail and wholesale premises, warehouses, hotels and care home
2) Structures including roads, walls, bridges and tunnels
* Land, Stamp duty and professional fees do not count as qualifying expenditure
* Must be time apportioned
What is the rate of SBA?
The SBA was a straight line 2% for a 12 month accounting period until 6 April 2020 when it increase to 3%
Can SBA be claimed on land?
No
