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Capital Allowances

Forums › ACCA Forums › ACCA TX Taxation Forums › Capital Allowances

  • This topic has 0 replies, 1 voice, and was last updated 14 years ago by matthalli.
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  • December 23, 2010 at 5:28 pm #47012
    matthalli
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Hi. I have a question regarding capital allowances. It is as follows:-

    Elizabeth has tax written down value on her main pool of plant and machinery of £16,000 on 6 April 2008. In the year to 5 April 2009 she bought a car for £8,000 (no non-business use) and she disposed of plant which originally cost £4,000 for £6,000.

    Calculate the maximum capital allowances claim for the year.

    The answer given is as follows:-

    Main Pool Allowances
    £ £
    Two v b/f £16,000
    Addition (not qualifying for (AIA) £8,000
    Less Disposal (limited to cost) (4,000)
    20,000
    WDA@20% (4,000) 4,000
    TWDV c/f 6,000
    Maximum Capital Allowances Claim 4,000

    I can understand where all the calculations come from except the TWDV c/f one. I make it £16,000. I must be missing something somewhere. Someone please help! Thanks.

    Matt.

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