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hi there.
I will like to ask you a question regarding about the calculations of capital allowance.
for example if the car’s list price £10000 and the company has obtained 10% discount , shall I use the list price to calculate the capital allowance or shall add back the discount rate and use the £11000 and applay the WDA 18% rate.I really need help here please
For capital allowance purposes it is the actual cost of the car that is used. The allowance available is then based on CO2 emissions of the car. If you are doing the exam tomorrow then the allowance would be either 100%, 20% or 10% not 18% which will be in next year’s exams! The employment income assessment of the car benefit would then be based on the List Price.
@Taxtutor said:
For capital allowance purposes it is the actual cost of the car that is used. The allowance available is then based on CO2 emissions of the car. If you are doing the exam tomorrow then the allowance would be either 100%, 20% or 10% not 18% which will be in next year’s exams! The employment income assessment of the car benefit would then be based on the List Price.thank you for your answer .
for example if I buy a car with a list price of £10000, including VAT , but I have negotiated a 15% off this list price , thus I as a company , the actual cost of the car will be £8500 (10000-(10000 * 15%)) and this figure will be used to calculate the Capital Allowance as it is the actual cost of the car.
am I right please?
thank you
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