ACCA · Question 24 · Income tax and NIC liabilities
Section B - Case 2 (GreenRoots LLP)
GreenRoots LLP purchased a diesel car (CO2 emissions 110g/km) for £20,000. Sarah uses this car 60% for partnership business and 40% for private use.
How are the capital allowances for this car calculated in the partnership's tax computation?
Answer options:
The car is placed in a single asset pool. The WDA is calculated at 18% and then restricted to 60%.
The car is placed in the main pool (18% WDA). No restriction is made for private use in the partnership computation.
The car is placed in the special rate pool (6% WDA) and restricted to 60%.
The car qualifies for 100% First Year Allowances.
32 questions · hints · full answers · grading
Expert