Julian is a sole trader who prepares accounts to 5 April each year. He acquired a car for both
business and private purposes on 1 October 2020. The car has a CO2 emission rate of 115 g/km
and cost £28,000. The private mileage for Julian's period of account to 5 April 2021 was 25% of
the total mileage for that year.
Required
What is the maximum amount of capital allowances that Julian can claim in respect of the car for
the year ended 5 April 2021?
Do we time apportion the allowance?
(28000 * 6% * 6/12 * 75%) = 630
OR
1260 if time is ignored
Ask the Tutor ACCA TX-UK
Capital Allowances for Individuals
You need to watch the lectures that take you though the study notes - the WDA is only time apportioned where the accounting period is other than 12 months - the date the asset is purchased within the period is irrelevant,
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