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Small Pool WDA can be used to write-off balances less than a £1000 for MAIN POOL or SPECIAL RATE POOL balances.
hi, I was practicing the opentuition lectures. I don’t understand the case when a motorcar is used for both private and business purposes. why it just multiplies the wdv by the percentage of business use and not even to the wda rate (8-18%)?
for eg . example 7, for the the c.allowance referred to business used car should be wdv 4200 x 70% x 18%, and even example 11, wdv 6000 x 80% x18%.
thank youI think that these calculations are used to calculate the capital allowance figure. The capital allowance then reduces net income for our tax calculation. A higher capital allowance will result in a lower net income and thus a lower tax liability. Therefore, we should only calculate the business use in order to not allow businesses to exploit the system by including their personal use of assets(cars) to reduce their tax liability.
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