I have a tax calc where 2 pools are being used due to the CO2 emmissions of the cars varying. Some vehicles have been disposed off from both pools at a lower value than the B/F WDV so I was expecting to show the remaing balance as a balancing charge on the tax calc to bring the WDV C/F to zero. However using tax filer, it doesnt allow me to do this. Instead it works out a capital allowance charge for the year from the lower value (WDV B/F Less Sales Proceeds).
My issue with this is that the vehicles are now fully disposed off and I showed a loss on disposal on the P/L (Albeit add it back for the purpose of the tax calc) yet I am having to keep a value for the asset in the tax calc and will have to do so for the years to come till the company closes.
Is this correct? Surely you would write it off totally in the tax calc too?
Apologies if i am being stupid here but I am a CIMA qualified and it is times like this I wish I had done ACCA!