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rose6772
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Hello, I have a doubt regarding the WDA% for private use of asset.
My question is, when do we use 18% and when do we use 6%?
I understand that the main pool rate is 18% and the special rate pool is 6% but I don’t get how we find the WDA percentage for the private use of assets column.Apologies if this is a silly question. I went through the course notes and the lecture on opentuition as well but I couldn’t seem to find it. Would appreciate if you could explain it or point me in the right direction. Thank you very much for all your help!
Tax Tutor
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In the study notes and lectures you firstly learn what assets qualify for AIA, WDA and FYA and which assets are main pool assets qualifying for 18%pa WDA and which are special rate pool assets which are entitled to only 6%pa WDA.
Where there is an asset with private use by the proprietor of the business you still apply the same rules to determine whether AIA is available or FYA is available and whether the asset qualifies for a WDA of 18% or 6% – the only difference is that instead of including that asset (usually a car) in either the main pool or special rate pool it is separated out and shown in its own individual column so that the capital allowance may then be restricted to the business use proportion.
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