20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Chapter 6 Example 7 Query about normal basis allowance

This topic has 2 replies, 2 voices, and was last updated 5 years ago by Tax Tutor.

Viewing 3 posts - 1 through 3 (of 3 total)

Author
Posts
May 5, 2020 at 9:15 pm #570093
shuv27
Participant
- Topics: 3
- Replies: 4
In the question, Adam purchased a car (105g/km) on 1 October 2019. The car is used for 60% business.
When I look at the answer, the fact that the car has been bought for only half the year (Oct, Nov, Dec, Jan, Feb,Mar) has not been taken into consideration for calculation of Capital Allowances.. I feel the calculation should be multiplied by the 6/12. Does this not apply in a situation when a car is used both for business and privately?
Thank you
May 5, 2020 at 9:29 pm #570095
shuv27
Participant
- Topics: 3
- Replies: 4
Sorry ignore me!
May 7, 2020 at 12:09 pm #570231
Tax Tutor
Member
- Topics: 2
- Replies: 3965
No problem! All being well you discovered that it is the length of the accounting period, not the date within the accounting period that the asset was purchased that impacts on the AIA and WDA calculations. The FYA of course is never time apportioned.
Author
Posts

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.