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Hello,
I have a question related to the example from the ACCA Article about Finance Act 2014.Example on CA (extract)
On 14. April 2014 the Car(2) was purchased for 10.100 and sold on 12 December 2014 for (8,300).
In the solution there is calculated WDA at 8%, but there is no balancing allowance on the disposal.
Note 2 says: Even though it is the only asset in the special rate pool, there is no balancing allowance on the disposal of this motor car because the expenditure is included in a pool.
In the note 2, I do not understand what exactly means “….because the expenditure is included in the pool”.Any help would be greatly appreciated.
I think I understend now.
Because this is a pooled category it can not get the balancing allowance (the business is not ceasing).Correct – while the business continues to trade there will not be a balancing allowance computed on the pool even if as in your example there are no assets that remain within the pool.
A balancing allowance may only arise for an ongoing business on the sale of a non pool asset, such as an asset with private use by the proprietor
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