Practice Question 11 – Mail/Special Rate Pool

This topic has 1 reply, 2 voices, and was last updated 8 years ago by Tax Tutor.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
November 9, 2017 at 9:51 am #414967
nitint
Participant
- Topics: 25
- Replies: 26
I see that the model answer has calculated WDA@8% in FY end 31/3/18 on the balance of 3272.
In this example the special rate pool was created with only one motor car in FY end 31/3/17 which was then disposed in FY end 31/3/18 so is it not allowed to create a balancing charge when we know that there is no asset in this pool after the disposal.
I know balancing allowance for mail/special pool is allowed in the year of cessation but is it not allowed in this case when no assets exist in the pool?
Thank you.
November 11, 2017 at 2:49 pm #415267
Tax Tutor
Member
- Topics: 2
- Replies: 3960
It has NOT created a balancing charge as it has been sold for less than tax wdv and hence as you say there can be no balancing allowance until cessation and it is irrelevant whether there are any assets remaining in the pool
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.