Carl Question Pg 234 for TX Notes

Aanurag6y ago

Hi there, I am failing to establish exactly why there is not balancing allowance for the Carl question (where Carl bought a car with CO2 emissions 170g/km) because Car was bought for 16,600 (WDA 6% =964 twdv c/f 15604 and sold at a loss of 12000 (considerign twdv of 15604 is greater than 12000), meaning too little depricaition has been assigned Can you urgently provide assistance? Thanks

TTTax Tutor6y ago#1

Look back at the relevant notes and lectures - see chapter 5 section 7.3 note (b) - the car is allocated to the special rate pool so there is no balancing allowance on its disposal - if the car had private use by the proprietor of the business then a balancing allowance would arise on its sale - this is not the case here!

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