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Hi Sir,
From what I gathered in your video is the benefit of depooling short life asset is you get to claim the balancing allowance if applicable and if you dont depool, then the main pool as a whole will eat into your balancing allowance as you will have a high wda with everything from the main pool and low residual value of the short life asset. So the main benefit is to protect the balancing allowance is this right?
Thanks
The main benefit is to ensure that you claim all the available CA in the lifetime of ownership of the asset as a balancing allowance will indeed arise. This will only be worthwhile where AIA is not available on the purchase, the asset will have a low residual value and the period of ownership will be short.
If assets go into the pool only a WDA will be available – a balancing allowance will only be available on the cessation of trading not on the sale of the asset.
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