Chapter 11 - CAs - Further Computations

Question 1

Special Rate Pool

Answer 1

Expenditure on the following goes into the special rate pool:

• Integral features
• Long life assets
• Thermal insulation of buildings
• Cars with CO2 emissions of more than 110g/km
• Solar panels

Question 2

Special Rate Pool and AIA

Answer 2

Assets in the SRP that AREN’T cars qualify for AIA

Question 3

Special Rate Pool WDA

Answer 3

SRP WDA is 8%

Question 4

AIA Allocation

Answer 4

First allocate AIA to SRP and then any remaining to the general/main pool

Question 5

Integral Features

Answer 5

Integral features are separately identified in the SRP and are written down at 8%. It includes:

• Lifts, escalators and moving walkways
• Space heating systems
• Air con and air cooling systems
• Hot and cold water systems
• Electric lighting and power systems
• External solar shading

Question 6

Long Life Assets

Answer 6

LLA’s have an expected useful life of more than 25 years, they are put in the SRP and have a WDA of 8%

Question 7

LLA Cont.

Answer 7

Items are not treated as LLAs where the total expenditure in the AP on such assets does not exceed £100,000. If LLAs cost less than £100k, they will be treated as P&M, put in the gen pool and will be written down at 18%

Question 8

£100,000 LLA Threshold

Answer 8

The LLA threshold is apportioned if the AP is longer or shorter

Question 9

Small Plant and Machinery Pools

Answer 9

Businesses can claim a WDA of up to £1,000 when the tax WD value in the main pool or SRP is £1,000 or less. The £1,000 allowance is prorated where the AP is long or short. It doesn’t apply to single asset pools