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Small pools allowance and short life assets

Treat item as a short life asset in order to get he small pools allowance

Hi 

A client has recently started in business and has introduced his van (worth £2k) and computer equipment (worth £500). As they are pre-owned assets only WDA are available. The van is 100% business, and is therefore eligible to be treated as a short life asset. Is there any reason why the remaining £500 in the main pool cannot make use of the £1k small pool allowance? 

CA23225 specifically states that the allowance doesn't relate to single asset pools, and therefore assumedly the single assets pool's WDV is not considered when assessing the main pool's WDV against the £1k limit. 

Chris

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15th Aug 2018 17:47

The computer equipment could be considered a single asset. Personally, I'd give it a miss but - hey - we're talking about small beer here and it's only a timing difference.

It's not £500, is it ? It's tax on 82% of £500 so we're talking about £78. It's buttons.

Thanks (2)
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to lionofludesch
15th Aug 2018 18:43

Thanks. Van is sold just after the year end, so want it in a short life pool to get balancing charge.

Taxfiler then automatically gives the small pools allowance on the computer. Just checking that this would be right.

Plus, clients always like tax savings!

Thanks (0)
to chrisacc1985
15th Aug 2018 18:46

chrisacc1985 wrote:

Taxfiler then automatically gives the small pools allowance on the computer. Just checking that this would be right.

Plus, clients always like tax savings!

Did you give Taxfiler all the information it needed to make the decision ?

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to lionofludesch
15th Aug 2018 19:13

Yes, entered the two computer assets as main pool not eligible for AIA. Entered the van as a short life asset.

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22nd Aug 2018 13:06

My understanding is that single asset pool is for assets with some non-business element. Also, I believe the main pool could in fact only contain a single asset, but that doesn't prevent it being the main pool. If the computer has no private use then it goes in the main pool.

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By Ruddles
to kevinringer
22nd Aug 2018 15:22

Agreed - there is no stipulation on the minimum number of items to be included in the main (or S/R) pool. The main (or S/R) pool could in fact contain no assets at all.

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