CH 12 - Capital allowances - Cars and other assets

Question 1

when ‘depool’ the asset is an option

Answer 1

where the asset is not expected to last more than 8 years

advantage will arise if sold within 8 years after which it gets transferred to GP

Question 2

what assets are excluded from
‘short-life’ asset treatment
(depool)

Answer 2

assets excluded from short-life asset treatement

• cars
• ships
• assets with partial non-business use
• exp. within SRP (integral features)

Question 3

what allowances are avialable on
cessation of business

Answer 3

No WDAs, FYAs or AIA
are given in the accounting period of cessation.

balancing allowance/charge will be available instead, even on items purchased in the cessation period