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Balancing Allowance over £3000 for a car

Balancing Allowance over £3000 for a car

SA clients car had engine damage but cost more than he could afford to repair it, therefore he scrapped it for a cost of £65. Now the capital allowances calculation is my query. The wda bfwd is £8,368, a third is taken as private use adjustment leaving £5,579 as a balancing allowance, but can this be claimed in full since there is a £3000 restriction on expensive cars? Any help gratefully received, can't seem to find answers anywhere else :(

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By BKD
10th Jun 2012 14:18

£3k isn't relevant

It is/was only the annual WDA that is/was subject to the £3k limit. As a result of that restriction, balancing allowances in excess of £3k are/were quite common. The only restriction is the non-business element.

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10th Jun 2012 15:22

BKD thank you for that, I was hoping that was the answer.

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