Study Hub – Quiz 20

Zola Ltd has an accounting reference date of 31 March. Tax written down values on 1 April 2023 were:
Special rate pool £20,000
Main pool £10,000
During the year ended 31 March 2024, Zola Ltd sold:

Equipment for proceeds of £15,000 on which the 130% super deduction had been claimed (the sale proceeds are less than the original cost).
Equipment for proceeds of £30,000 on which the 50% first year allowance had been claimed (the sale proceeds are less than the original cost).

What will Zola Ltd’s overall balancing charge be for the year ended 31 March 2024?
A.£30,000
B.£25,000
C.£23,200
D.£27,700

The model answer:
Super deduction (£15,000)
First year allowance (£30,000 × 50%) (£15,000)
Special rate pool (£20,000 ? (£30,000 × 50%)) £5,000
Main pool (£10,000 × 18%) £1,800
Overall balancing charge (£23,200)

Can you please explain why the balance at SRP has not been multiplied by 6% so that WDA is £300 instead of £5,000?