It is my understanding that residual values are carried forward for WDA against future years. For example car worth £3000(C02 135) sold for £1000, balance £2000. Post 2009 I assume balancing allowance cannot now be claimed but must be carried forward, or maybe just written off, and what if the C02 is different from the car sold, in this case 120. If carrying forward this would take ages to clear down given the current rates for cars.
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Not sure how small pools (<£1000) are affected.
It hasn't happened to any of my clients yet but I believe you get the relief. I can't find any provision to disapply the relief.
Unless it is an unincorporated business, and the car has some private use. In which case it sits in a pool of its own, so that a disposal will trigger a balancing allowance.
lionofludesch wrote:
Dunno - is it in a single asset pool ?
Yes, 80% Business Use
Then you're grand. Balancing allowance with 20% disallowance.