Disposal of car

Disposal of car

Didn't find your answer?

Too much going on, haven't got all morning to bone up so would appreciate some help.

If car costs £20k, 114 CO2, at the end of 3 years, if there is nothing else in the pool what happens to the £12800 wdv if the car is sold?

Replies (11)

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Teignmouth
By Paul Scholes
15th Apr 2013 12:20

Balancing charge or allowance

Hi OGA - pretty sure it follows the normal balancing charge or allowance rules. (not sure how it's £12,800)

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By Marion Hayes
15th Apr 2013 12:27

not the end of the pool?

 

I think it would be part of the 10% or the 20% pool and no balancing events occur till the end of the trade.

CAA01/S53 & S54

Expenditure is pooled in order to calculate writing down allowances, balancing allowances and balancing charges. CA20006 You pool expenditure by adding it together and deducting disposal values from the total. If the disposal values are more than the expenditure in the pool the difference is a balancing charge. There are no balancing allowances until the qualifying activity ends. When it does, the balancing allowance is equal to the unrelieved qualifying expenditure. 

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By User deleted
15th Apr 2013 12:40

Thanks guys ...

@ Paul - £20k x 80% x 80%! (nothing else in pool) - should be £13448, stupid me went from the HMRC website thinking it would be up to date - should know by now!

 

The table below only applies to cars with 100 per cent business use.  CO2 emissionsCapital allowances treatment of expenditureOver 160 grams per kilometre (g/km)Goes into the special rate pool and qualifies for writing-down allowances at the rate for the special rate pool, currently 10 per cent per annum.160g/km or less but more than 110g/kmGoes into the main pool and qualifies for writing-down allowances at the rate for the main pool, currently 20 per cent.110g/km or less (but note that the first-year allowance for cars in this category is due to expire in 2013)You can claim up to 100 per cent allowance in the accounting period when they were bought, the balance (which may be nil) goes into the main pool in the next year. For detailed guidance, see the guide First-year allowances: the basics

 

@ Marion, I know the general pooling rules, but seems wrong you could have a pool balance and CA's ongoing even though the company no longer has any assets!

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Teignmouth
By Paul Scholes
15th Apr 2013 12:44

Twit

Sorry - of course they are now part of the general pool, per Marion, but the WDA will be 18% (I hope/think).

Edit: easy way around it, buy a lower emitting car, my Seat Leon will be 100% yipee

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Quack
By Constantly Confused
15th Apr 2013 12:52

Bone up

#Sniggers# he said 'bone up'...

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By User deleted
15th Apr 2013 13:59

@CC

went for a chinese meal at the weekend - the crispy duck was divine :oP

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Replying to Cheshire:
Quack
By Constantly Confused
15th Apr 2013 14:24

Ahh

Old Greying Accountant wrote:

went for a chinese meal at the weekend - the crispy duck was divine :oP

I wondered why I hadn't heard from uncle Steve since the weekend...

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By User deleted
15th Apr 2013 15:49

Just working a projection ...

... so although no £3k cap now, if you bought a £60k gas guzzler car and re-newed every 3 years @ £40k net cost in 10 years your pool value would be @ £100k and you would effectively be getting 18% wda anyway!

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By Marion Hayes
15th Apr 2013 16:03

changes, changes

@ Paul - well spotted - 

 @OGA I know it seems wrong - that was the point I think to stop balancing allowances. When car in ltd company there is no private use so your table is correct - except I thought that the CO2 rates were dropping again this year. 100% for 95 or less, 18% for 96-130 and 8% for over 130

 

Don't forget this year that there is only a restriction on lease rentals of 15% if it is over 130co2

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By User deleted
15th Apr 2013 16:37

No wonder ...

... I'm old and greying - all this remembering what rates/rules/restriction apply to what dates, it was bad enough with the VAT rate yo-yo, now it's happening to everything!

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Teignmouth
By Paul Scholes
16th Apr 2013 13:38

On top of this there's the %

alcohol content of favourite Ciders & Beers....I'm limited...in more ways than one :-(

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