Norma has prepared a set of accounts for the nine-month period to 31 December 2019. The written down value of her plant and machinery at 31 March 2019 was as follows: Main pool £178,400 Toyota motor car £18,200

Plant and machinery transactions during the period to 31 December 2019 were:

17 April 2019	Bought plant	64,450
1 May 2019	Sold Toyota motor car	15,000
1 May 2019	Bought Saab motor car (emissions 100g/km)	29,600
4 June 2019	Bought motor van	14,500
12 October 2019	Bought Ford motor car (emissions 47g/km)	11,600
3 November 2019	Bought Peugeot motor car (emissions 116g/km)	15,400
1 December 2019	Sold plant (original cost £10,000 in 2015)	3,400

There was 50% private use (by Norma) of the Toyota and Saab motor cars. All acquisitions of cars as of new. Prepare a capital allowances computation for the period to 31 December 2019.

Personal allowance £12,500

Transferable amount £1,250

Income limit £100,00

Where adjusted net income is £125,000 or more, the personal allowance is reduced to zero.

Plant and machinery Main pool 18% Special rate pool 6%

Motor cars

New cars with CO2 emissions up to 50 grams per kilometre 100%

CO2 emissions between 51 and 110 grams per kilometre 18%

CO2 emissions above 110 grams per kilometre 6%

Annual investment allowance Rate of allowance 100% Expenditure limit £1,000,000

Cash basis Revenue limit £150,000 Cap on income tax reliefs Unless otherwise restricted, reliefs are capped at the higher of £50,000 or 25% of income.

Answer rating: 100% (QA)

Capital allowances for the period to 31 December 2019 Main pool Bo... View the full answer