Acca tx uk exam practice question 11 capital allowance

This topic has 3 replies, 3 voices, and was last updated 4 years ago by mndao.

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May 13, 2021 at 4:23 pm #620515
fekadeselassie
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On capital allowance computations ..should balan.adjustement be added or substracted in total allwance at the time disposal …or should be discounted by WDA rates..
May 15, 2021 at 2:06 pm #620664
Tax Tutor
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Not sure why you are referring here to Practice Question 11 as there is no balancing allowance that arises in that question – when a balancing allowance does arise it is of course added to the allowances of that period and there is no WDA that arises in that period of sale.
Have you worked through the OT Study Notes and accompanying lectures before attempting this question??
August 11, 2021 at 6:13 pm #631253
mndao
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Dear, I was about to raise the same question (I guess) as my colleague.
The car which is in the SR pool has been sold in YE March 2022 for a value lower than the WDV b/f at the beginning of the year. Therefore I was expecting a balancing allowance but the response seems to deal with a WDA 6% which I do not follow.

Thank you
August 11, 2021 at 6:40 pm #631256
mndao
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Please disregard this question (apologies for that) as I found out that a balancing Allowance can only arise on a main pool or SR pool on cessation of the trade.
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