Special rate pool-corporation — OpenTuition Forums

SASayeda Amal1mo ago

I was going through a question- Greenzone Ltd. There the period-end was 6-month period to 31 March 2026. And the company had installed new air-conditioning system for £550,000. The question asks for maximum capital Allowances that can be claimed. So the answer was 525,500 I was able to get it right but I was confused about WDA @ 6% The answer explained that WDA will not be available on the remainder of the new expenditure until the following period. Is it because we claimed AIA and FYA 50%? And is this only for corporation tax? Thank you.

AmandaPTutor1mo ago#1

Yes and yes! The AIA is time apportioned for the six month period to £500,000. The £50,000 that is not covered by the AIA is entitled to the 50% FYA (Special Rate Pool) which is not time apportioned, giving a total this period of £525,000 (not £525,500) . The 6% WDA cannot be claimed in the same period that the 50% FYA is claimed, but will be available in the following period on the TWDV carried forward (£25,000). Only companies are entitled to the 50% FYA in the SRP (and the 'full expensing' treatment in the main pool).

SASayeda Amal1mo ago#2

Is it the same with full expensing in the first year? Meaning that we can't claim 18% in the main pool but the following year we can?

AmandaPTutor1mo ago#3

With full expensing there'd be nothing left to claim on, either this period or next, as after any AIA is applied, the balance gets a 100% FYA.

SASayeda Amal1mo ago#4

Oh yes I missed that point. Thank you.

AmandaPTutor1mo ago#5

No problem.

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