Capital Allowances

Question 1

100% FYA is available on what 2 items?

Answer 1

1. New and unused zero-emission cars and goods vehicles
2. Charging points

Question 2

What happens when an item is sold from the Main Pool?

Answer 2

Before calculating WDA of Main pool, Deduct the lower of:
Disposal proceeds
Original cost

From TWDV b/f and / or (1-50g/km) cars

Question 3

What is the treatment if the balance in the main pool on which WDA is calculated is < £1000

Answer 3

Whole amount can be claimed and there is no need to calculate 18% WDA

This is not available for private use assets.

Question 4

When the disposal value of an asset being sold is not equal to the TWDV b/f, what 2 scenarios could happen?

Balancing adjustments

Answer 4

1. Disposal value > TWDV b/f, Balancing Charge [negative]
2. Disposal value < TWDV b/f,
   Balancing Allowance [positive]

Only BU can be claimed

Question 5

When should business use % be applied to assets in the main pool?

Answer 5

Calculate PU % next to TWDV b/f in main pool
Calculate 18% WDA then x BU %

Question 6

Do you have to time apportion the limits for AIA for an accounting period < 12 months?

Answer 6

Yes

Question 7

For capital allowances for corporations, Is AIA available for second hand additions?

Answer 7

Yes