Help - Capital Allowance

Help - Capital Allowance

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Client had a car as only asset, sole trade so we kept out pool and restricted allowwance by 1/3 private.

Car sold December 2013 but having trouble getting CA's right.

WDV b/f say £30000

Proceeds £20000

I think therefore we are left with £10000 in pool to get WDA's on evermore

What rate do we get WDA?

How the hell do I get IRIS to show it right, it wants to give me a BA of £10k which I am sure is not right but there is no way to over write this.

All I can think is a manual adjustment to reverse the BA and bring in the BA figure as additions for WDA's!

Replies (8)

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RLI
By lionofludesch
25th Jan 2015 16:58

Single Asset Pool

So - are you saying the car was in a Single Asset Pool ?

Just checking, like .......

If you've "emptied" your pool, you get a balancing allowance. 

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By Marion Hayes
25th Jan 2015 17:05

CA27005

is the manual reference

Balancing allowance reduced by the private proportion is correct

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By cbp99
25th Jan 2015 17:06

Iris seems correct

Private use, so single asset pool, and balancing allowance on disposal

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By User deleted
25th Jan 2015 17:08

Yes ..

... that is what IRIS said to do if you have private use adjustment, but they don't tell you what to do if that asset is sold and you have the stupid situation of no assets but a big pool figure to carry forward - which is my understanding of what should happen

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By User deleted
25th Jan 2015 17:12

Thanks guys ...

... really grateful, been a long weekend and brains going fuzzy! Client will be happy as this will trigger a big refund and the BA gives a nice loss to set against other income taxed at source.

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By carnmores
25th Jan 2015 19:00

its one of the last tax breaks

that can really help

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Red Leader
By Red Leader
26th Jan 2015 11:41

agreed

The other point is that if there is no private use, the WDV does get carried forward st miserly WDAs.

So an incentive for the client to make the case that "yes, there is some private use", rather than 100% business. Tricky to argue that there is some private use if a client is VAT regd but not applying the fuel scale charge.

Interesting.

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By thomas34
26th Jan 2015 10:52

Also Agreed

It's always best to find 1% of private use if you can.

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