WDA on Plant & Machinery

WDA on Plant & Machinery

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Hello all,

When calculating the WDA on main pool plant & machinery, how should I treat the disposal of an item at nil value? In this case the item was simply binned as it no longer worked and had no scrap value.

I've read the HMRC guidance but feel it's a bit ambiguous on this point.

Is it correct to,

A) Deduct the purchase price of the scrapped asset from the value of the pool, or 

B) Retain the value in the pool and deduct the sales value only, in this case nil.

Thanks for your help.

H

Replies (5)

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Portia profile image
By Portia Nina Levin
18th Nov 2014 11:19

B

.

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James Reeves
By James Reeves
18th Nov 2014 11:23

(B)

Sales value

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RLI
By lionofludesch
18th Nov 2014 11:27

B

You're entitled to the tax relief on the cost of the asset.

If you deduct the cost of the asset, you'll get nothing.

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By amingram
18th Nov 2014 11:34

WDA's

If the item was scrapped, it is treated as disposed of at Nil value.  The pool remains and you claim your 18% writing down allowance each year.

One point that is often overlooked is if the value of the pool is small (ie less than £1,000) then the whole pool may be written off in the year.

Regards

Mark

Wesram Ltd

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By Human_face
18th Nov 2014 12:41

Thanks all for your help!
 
H

Thanks all for your help!

 

H

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