Capital Allowances Flashcards
Qualifying expenditure
Plant and machinery
Structure and buildings
Patent rights
Research and development
Plant and machinery
Plant and machinery = apparatus used by businessman for carrying on his business
Fixture and fittings only qualify if they have an active function e.g display lighting
Main and special rate pool
Plant and machinery is pooled in the main pool
Special rate pool is used for certain items as integral features of a building
Cars with emissions of 110g/km or less are allocated to the main pool but any exceeding are allocated to the special rate pool
Writing down allowance
The cost of any plant and machinery acquired during the period is added
Any plant and machinery disposed of is deducted, the amount is the lower of the original cost or sale proceeds
WDA may then be claimed on the remaining balance
Rates of WDA
Main pool = 18%
Special pool = 6% (8% prior April 6 2019)