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Referring to the answer, the WDA calculation of Car in the Main Pool purchased on 1 Dec 2022 for period to 31July 2023.
In the answer shown = 18% x 15/12 x 21,600
I do not understand why the capital allowance is calculated at 15/12 ?
Thank you
Capital allowances for sole traders are available for a 12 month period. These are adjusted and pro-rata for a short period of accounts – say 6 months accounts would mean 18% x 6/12.
In this case the accounts are 15 months long, so the adjustment for the CA is 15/12 which are then deducted from the net proift – then you would apply the basis period rules to see which tax year taxes which proportion of these accounts.
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