capital allowances

Question 1

what is capital allowances

Answer 1

is the depreciation charged from the perspective of the HMRC

Question 2

what are capital allowances charged on

Answer 2

Capital Allowances are charged on qualifying assets; which are plant and machinery (e.g. truck, delivery van, equipment, laptop, lorry etc)

Question 3

what is annual investment allowance?

Answer 3

Is an allowance given on the purchase of all Plant &
Machinery items (except for Cars) per annum
The maximum allowance amount available for a year is 1,000,000. This cannot be carried
forward or backwards.

Question 4

what is the maximum allowance allowed for aia

Answer 4

1,000,000

Question 5

if there is a disposal scenario then what value of the disposal should be selected

Answer 5

the lower of :
-original cost
-sales proceeds

Question 5

what is small pool allowance

Answer 5

If the pool balance comes out to be less than 1,000 per annum ) that is known as a Small Pool Allowance

in such cases the entire 100% of the pool balance is treated as the capital allowance.

Question 6

what is included in the special rate pool

Answer 6

1. Plant & Machinery greater than or equal to 25 years (long term assets) —> AIA is Applicable
2. New and Second hand Cars with CO2 emission of > 50gms/Km —-> No AIA is Applicable
3. Integral Features such as; electrical fitting, heating, cooling, ventilation, lifts, escalators—–>
   AIA is Applicable

Question 7

should aia be charged to sr pool or main pool

Answer 7

As a rule of thumb AIA should first be charged to all SR pool items than Main Poolitems. Because the SR pool has an allowance of 6% compared to that of the main pool

Question 7

what was the Car Allowance Summary

Answer 7

Co2 = 0 gms/km (Zero Emission) —–> Brand New Car —–> 100% First Year Allowance (FYA)

2. Co2 = between 0 to 50 gms/km —-> Second Hand or New —-> Main Pool WDA 18% (Low emissions cars)
3. Co2 = greater than 50gms/km —–> SR pool WDA 6%

Question 8

what are short life assets

Answer 8

Assets that have a life of less than or equal to 8 years, are classified as SLA.
The allowance for them will be calculated in a separate pool (“Depooled”)

Question 9

how to calc structures and buildings allowance

Answer 9

cost x 3% x time apportion

Question 10

what is the limit to the useful life of sba

Answer 10

33 years and 4 months

Question 11

when does the useful life begin?

Answer 11

the amount of time the building has been standing is the useful life