Ch8: Capital Allowances

Question 1

Is there AIA on cars?

Answer 1

No

Question 2

WDA % on the Main Pool?

Answer 2

18%
Use on Plant & Machinery that DOES NOT QUALIFY for AIA.

Question 3

100% AIA is available on the first £X…

Answer 3

£1,000,000

Question 4

Cars with CO2 emissions of 50+ g/km go to which pool?

Answer 4

Special Rate Pool (SRP)

Question 5

Do you add expenditure on Plant & Machinery that is INTEGRAL FEATURES to a building in the SRP or MP?

Answer 5

Special Rate Pool (SRP)

Question 6

What is the % of WDA in the SRP?

Answer 6

6%

Question 8

What period will you get Enhanced Capital Allowances?

Answer 8

01/04/2021 - 31/03/2023

Question 9

What is the process for working out the Enhanced Capital Allowances?

Answer 9

1. Use AIA.
2. Transfer 50% allowances .
3. Transfer to SRP (And there will be no 6% WDA in the first year).

Question 10

What are the two types of Enhanced Capital Allowances?

Answer 10

1. 130% FYA for expenditure falling into the MP.
2. 50% FYA for expenditure falling into the SRP.

Question 11

How to add cars with ‘Zero CO2 emissions rate’ into the Capital Allowances workings?

Answer 11

ZERO CO2 Emissions =
- Receives 100% FYA.
- Must be a NEW electric car.

Question 12

How to add cars with ‘1-50g/km CO2 emissions rate’ into the Capital Allowances workings?

Answer 12

1-50 g/km =
- Includes second hand cars.
- 18% WDA.
- Main Pool.
- No AIA.

Question 13

How to add cars with ‘50+ g/km CO2 emissions rate’ into the Capital Allowances workings?

Answer 13

50+ g/km =
- SRP.
- No AIA.
- 6% WDA.

Question 14

When there is Private Use of Assets, do you claim the private or business use in the WDA?

Answer 14

Business use only.

Question 15

What pool does Short-Life Assets (SLA) go in?

Answer 15

Main Pool (MP)

Question 16

True or False -
WDA, FYA and/or AIA is given in the final period during cessation of trade.

Answer 16

False
- No WDA, FYA or AIA is given in the final period.

Question 17

Do you include the following when calculating SBA’s?
- Offices

Answer 17

Yes

Question 18

Do you include the following when calculating SBA’s?
- Residential Building

Answer 18

No

Question 19

Do you include the following when calculating SBA’s?
- Factories and Warehouses

Answer 19

Yes

Question 20

Do you include the following when calculating SBA’s?
- Retail and Wholesale Premises

Answer 20

Yes

Question 21

What is the WDA in SBAs?

Answer 21

• 3% straight-line over a period of 33.3 years.
• DO NOT Pool.
• New purchasers will takeover the remaining allowances of the 33.3 years.