A little help with the following please:
£250,000 of 'general pool' assets purchased in 2017-18.
£200,000 eligible for AIA and the remainder eligible for 18% WDA due to the cap on AIA expenditure.
The b/fwd wdv of the general pool is NIL. The client has sold assets and received £100,000 for these.
My response to my colleague who queried this is that the client will have £200k of AIA and a £50k balancing charge (this agrees to the computation). My colleague has said that she doesn't agree as your are in effect getting 100% relief for the non-AIA additions instead of 18% WDA's.
Any HMRC examples, guidance etc. that you could point me in the direction of would be appreciated.