Capital Allowances Flashcards

1
Q

Qualifying expenditure

A

Plant and machinery
Structure and buildings
Patent rights
Research and development

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2
Q

Plant and machinery

A

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

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3
Q

Main and special rate pool

A

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

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4
Q

Writing down allowance

A

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

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5
Q

Rates of WDA

A

Main pool = 18%
Special pool = 6% (8% prior April 6 2019)

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