Hi,
Having a brain freeze - as I am trying to put together scenarios with regard to company car purchase for the MD.
If I purchase a company car, I know it will go into a special rate pool at 8% reducing balance.
After two years, assuming the car is sold for less than the TWDV, is the loss that arises allowable for corporation tax?
Sorry if this is too basic -
Thanks.
Replies (7)
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No balancing allowance until trade ceases
See https://www.accountingweb.co.uk/topic/cars-and-capital-allowances-solution
Am I missing
something?
My understanding is that you deduct the sale proceeds from the balance at the start of the year and that the balance in the pool continues to be written off at 8% until you hit the small pool level. There is no balancing allowance until the company ceases trading.
It would be different for a sole trader or partner but only if the vehicle is in a single asset pool because of private use.
Oops
Sorry, i'm clearly getting mixed up, am I thinking about short life assets, or perhaps the rules when cars had their own pool if they cost more than £12k?
Am i that out of date :-0
Me too
Sorry, i'm clearly getting mixed up, am I thinking about short life assets, or perhaps the rules when cars had their own pool if they cost more than £12k?
Am i that out of date :-0
You had me wondering the same about myself! Your posts are normally spot on, and I had to make sure I was right before I posted. :-)