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i hv a doubt see 100% fya and aia r not available on cars. then what about lorries ,vans trucks and other goods vehicles?
100% FYA on new zero emission cars and goods vehicles.
AIA available on vans, lorries, trucks and non-zero emission goods vehicles (as they are not cars)then the super deduction of 100% and 50% fya for companies , is this avalable for cars , lorries , vans and trucks?
Cars, no.
New vans, lorries and trucks would go in the main pool and the ‘super deduction’/FYA of 100% would be available (once the AIA has been used). They would not go in the special rate pool therefore the 50% FYA is not applicable.
this qtn is regarding super dection given to companies. suppose an asset purchased in earlier acctng period on which super deduction was claimed, is disposed in current acctng period how would we treat this ? is the disposal amt a balancing allowance?
In the MCQ2 in Chapter 5, the allowance claimed was the full 550,000×3% even though it was only brought into use on 1 June 2023 and the accounts were prepared on 31 October 2023 (5 months). I was wondering why it wasn’t time apportioned, would love if I got clarity!
Allowances, where apportioned, are only ever apportioned according to the LENGTH OF THE ACCOUNTING PERIOD, not the length of time the asset has been owned.
Hello Sir,
I have a question from Kaplan Exam kit named ETHEL there is a transaction :
Business started 6th April 24 to 5th Mar 25
On 1 June 2024, Ethel paid a car dealer £14,000 by cheque for a car with CO2 emission of 40 grams per kilometre. She also made totalling £3,000 related to running costs of the car for the year. She had used the car 40% of the time for private purposes and she drove 11,000 business miles during the year.The requirement is to calculate Trading Profit under ACCRUAL basis….
My question is only while calculating the capital allowance on Car:
14000*18%*10/12 *60% = 1,260But the examiner did not apportioned it with month
14000*18%*60% = 1,512Why?? We apportion it by months to get Closing TWDV in every pool when its required. But in this situation why we did not computed?
I assume you have made a mistake with the accounting period and that it should be 6 April 2024 to 5th April 2025 (not March).
The WDA is only ever scaled/time apportioned re the LENGTH of the period, not the length of time the asset has been owned. So if the period is 12 months long, the full 18% WDA is given, even if the asset was purchased on the last day of that period.
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