Self Employment - Capital Allowances Flashcards
1
Q
qualifying exemptions
A
- P&M
- R&D
- Structure & buildings
- Patent rights
- Know-how
2
Q
Fixture and fittings
A
- if the item preforms an active function carrying on the business it it treated as plant. if not it does not qualify
3
Q
Expenditure that qualifies as P&M
A
- thermal installation
- personal security assets
- certain integral features of a building
- computer software
- building alterations required for P&M
4
Q
Main pool
A
general P&M goes to the main pool
5
Q
Special rate pool
A
- used for certain items such as integral features
- cars with emissions of more than 50g/km are SRP
6
Q
First year allowance
A
- zero emissions cars
- machinery for refusing biofuel or hydrogen
- electric vehicle charging points
- zero emissions good vehicles
7
Q
balancing charge
A
- when disposal value of p&m is more than the balancing expenditure in the pool
- balancing charge is a negative capital allowance and is added to trading profits
8
Q
balancing allowance
A
required if a business ceases trading or if a non pool asset is disposed
9
Q
non pooled assets
A
- each asset treated differently and has its own ‘single asset pool’
- two main categories:
1. asset with some private use
2. short life assets
10
Q
assets with private use
A
calculate capital allowance in full but trade can only claim the business portion of these allowances
11
Q
short life assets
A
- disposed within 8 years
12
Q
how are CAs calculated in the case of cessation of trade?
A
- any additions in the final period are added to the pool as usual
- No AIA, FYA or WDA is given
- disposal value of each pool is subtracted from the balance of unrelieved expenditure, generating balancing allowance/charges
13
Q
Miscellaneous CAs
A
- patent rights have 25% WDA
- know-how have 25% WDA
- R&D related to trade have FYA of 100%
