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Hi sir,
Plz help me with with clearing my confusion.
I dont know when to time apportion wdv mainpool or special rate pool comparing to purchase date , sale date or year end ?
Examples of Q6 march /june 2016 jump ltd
And june 13 q2 greenzone ltd.
I appreciate ur reply, thanks.
You mean WDA not WDV I think. The available WDA is never time apportioned on a basis of either purchase date or sale date!
Time apportionment of both the WDA and AIA is based on the length of the accounting period!!
Also remember that in the final accounting period of trading of a business there is NO AIA, WDA or FYA.
Have you read and worked through the OT material?Am sorry u are right i mean wda
Yes i did but still not totally clear.
So the length of accounting perid means the start of trade till sale date ?
Please refer to q6 in m/ j exam to calrify my misunderstanding
Thanks.
The length of the accounting period is exactly what it says it is – which in this question you are clearly told is a 3 month period and hence the WDA on the main pool balance is accordingly restricted to 3/12 of the normal 18% figure, as per my original answer above. Your statement about start of trade till sale date is totally meaningless and not understanding the basic term “accounting period” suggests that you really do need to go back to the notes and lectures – again I ask have you used the OT course notes and listened to the lectures on capital allowances and corporation tax?.
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