CAPITAL ALLOWANCE

268.MAISON LTD
Uncompleted section 2 – Capital allowances
Your assistant has correctly calculated that capital allowances of £23,800 are available on the
main pool. However, she is unsure of the amount of capital allowances which are available
in respect of the £140,000 spent by Maison Ltd during November 2020 constructing an
extension which is adjacent to the company’s existing freehold office building. The extension
is used by the company’s employees as a staff room and was available for use from 1
December 2020. The total cost of £140,000 is made up as follows:
Integral to the building £
Building costs of extension 93,300
Ventilation system 6,700
Heating system 3,900
Not integral to the building
Furniture and furnishings 33,500
Refrigerator and microwave cooker 2,600
–––––––
Total cost 140,000

SOLUTION
Capital allowances
£ £
Main pool allowances (given in question) 23,800
Building costs 0
Ventilation system 6,700
Heating system 3,900
Furniture and furnishings 33,500
Refrigerator and microwave cooker 2,600
–––––––
46,700
AIA (46,700)
–––––––
46,700
–––––––
Total allowances 70,500

Goodday,Please i don’t understand why the 130% super deduction wasn’t available on the furniture and finishings, refrigerator and microwave cooker instead of the aia.I’ll appreciate if you can explain