Chapter 5 Capital Allowances TX-UK FA2023
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For MCQ2, shouldn’t the SBA be time-apportioned to take into account when the building was brought into use i.e., 550,000 x 3% x 5/12?
@tutor – Please could you answer this one as I also thought the SBA should be time apportioned? From when the building came into use until the year end so 5 months of £550,000 * 3% * 5/12
I think so has anyone got reply?
In Example 1, why was the purchase of second hand motor car not added to AIA? Must a plant and machinery be new to be included in AIA?
AIA applies to all expenditure on plant and machinery except cars.
In MCQ2, shouldn’t the SBA be time apportioned as it was only put to use for 5 months?
In example 1, disposal of plan is taken as main pool allowances but it is related to AIA. What is the reason for taking of disposal of plant as WDV not AIA there?
Disposal/sale of plant is taken as main pool allowance. If plant was purchased it would qualify for AIA.
Hello,
Can u explain in example 7 why Employment income was multiplied by 3/12?
because she worked in a tax year for employer for 3 month, and then started self employment and being in that state for 9 months , total 12.
when is an expenditure qualified to be treated as a main pool or special rate pool
Main pool – expenditure relating to plant + machinery.
Special rate pool – top of page 56: integral features of a building, long life assets, motor cars with CO2 emissions over 50 grams per km
Chapter 5, part 4 , 14:26min , MCQ2
Answer provided to MCQ2 does not take into account when the structure and building was first brought to use.
Maximum SBA should be £550,000 * 3% * (5/12months)
Example 6 , 5:05mins
There is no reference to “New” Electric motor car (zero emissions) which is the criteria to determine whether FYA is applicable.
In the exam, should we also automatically assume it is a “new” car?
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