Hi all
I'm so used to claiming the AIA and having cars in separate pools due to private use, I think I've forgotten the basic rules when the situation is otherwise!
So a client buys a car with no private use, maybe it's a posh car to show off to customers and they leave it at the office and drive their Fiat Punto home afterwards. It gets pooled in the main pool and WDA claimed each year.
They decide they want a new car, so they sell it for £5,000 when the WDV b/f is £10,000 but the new car has 10% private use, so that is put in its own section. Is it correct that they now have new car (WDA less PU) and a pool with £5,000 in it, but no assets, attracting WDA as before?
As I say, apologies for the basic question, but it has been so long since I saw this situation I've lost the knowledge...
Replies (5)
Please login or register to join the discussion.
You're correct, you simply run with the "empty" pool until it goes below £1,000 and you can write it off. I think it's only on cessation of a trade that the main rate/special rate pools close otherwise.
It gave me a headache the first time I came across this. Didn't sit naturally there being a pool remaining when the business had no assets.
Agree, cessatio of trade is the only way to get a balancing allowance unless sale exceeds bf
I have only had it once, on special pool, Landrover.
But then I do not really believe pool cars exist on proprietor owned companies. BUT just got one on a new client
Agree, cessatio of trade is the only way to get a balancing allowance unless sale exceeds bf
In which case it's unlikely to be a balancing allowance ;¬)
Pedants Anonymous
EDIT - I re-read your comment, with a different interpretation.