Capital Allowances

Question 1

If a business is VAT-registered, do we use the VAT-inclusive or VAT-exclusive price?

Answer 1

VAT-exclusive.

Question 2

If a business is NOT VAT-registered, do we use the VAT-inclusive or VAT-exclusive price?

Answer 2

VAT-inclusive.

Question 3

What is valued at VAT-inclusive price regardless of whether the business is VAT registered or not?

Answer 3

Cars with private use.

Question 4

When the accounting period is shorter than 12 months - is AIA (£1m) apportioned?

Answer 4

Yes.

Question 5

When the accounting period is shorter than 12 months - are balancing charges/allowances apportioned?

Answer 5

Yes.

Question 6

When the main pool or special rate pool is less than £1,000 - what can be claimed?

Answer 6

Small pool allowance.

Question 7

What falls under the special rate pool?

Answer 7

• Integral features of a building
• Items with a long life
• Solar panels
• Thermal insulation added to a building
• cars with CO2 emissions above 50g/km

Question 8

What falls under ‘integral features’?

Answer 8

• lifts, escalators and moving walkways
• space and water heating systems
• air-conditioning and cooling systems
• hot and cold water systems (not toilet and kitchen facilities)
• electrical systems, including lighting systems
• external solar shading

Question 9

What qualifies for FYA?

Answer 9

All these must be new and unused:
- electric cars and cars with zero CO2 emissions
- plant and machinery for gas refuelling stations e.g. storage tanks, pumps and refuelling equipment for gas, biogas and hydrogen
- zero-emission goods vehicles
- equipment for electric vehicle charging points
- plant and machinery for use in a special tax site in UK Freeports or Investment Zones, if you’re a company

Question 10

When approaching disposals - we take the lower of..?

Answer 10

• disposal proceeds
• original cost

Question 11

Are balancing charges/allowances apportioned for private use as well as time?

Answer 11

YUH!