capital allowance

Small pool rules only apply when before calculation of WDA on the general pool Or special rate pool the balance is 1000 or less and the limit is for a 12 month period of account.

The Small Pools WDA Where the tax wdv of either the main pool or special rate pool prior to calculating the WDA is less than £1,000, the entire balance may be taken as a WDA in that period. The £1,000 is prorated if the accounting period is other than 12 months. if you see example 2 of chapter 5, the motor car is sold leaving a balancing allowance of 4,200. the accounting period is 12 month and the capital allowance is the 70% of the full balancing allowance. if the car wasn't used for the private use, the capital allowance would be the full amount of 4,200. so, i guess the same must be applied to the practice question no.11. the scenario is the same, accounting period is of 12 months and after selling the motor car it leaves a balancing allowance. the only difference is in example 2 the car was partly used for private use and in practice question no.11. the car is fully used for business purpose.

sir, can you please enter to this as well

The key issue is whether or not the car has private use by the owner of the business! If it does then each and every private use asset has its own individual CA computation so that when it is sold a balancing adjustment will arise which is then restricted to the business use %. If the car does not have private use by the owner then based on the CO2 emissions it may be allocated to either the main pool or the special rate pool. The point about a pool is that assets lose their individual identities so that no balancing adjustment will arise when the asset is sold. The only time a balancing allowance will arise on a pool is if either (as you mention above) the small pools WDA is available and is claimed or when the trader ceases trading.