One man driving school business upgraded his car and paid £10k for a new one in March 2011.
He wasnt able to sell his old car until May 2011.
How do I correctly calculate the capital allowances for this business? In theory can he claim 20% WDA on the new car as he purchased it in the tax year and an additional 20% on his old car as he had use of it during 11 months of the year? I realise there is to be a balancing adjustment in the 2011/12 tax year.
Is my understanding correct?