TXF6 UK

Question 2a note 3

Note 3 – Plant and machinery
On 1 April 2012 the tax written down values of Greenzone Ltd’s plant and machinery were as follows:
£
Main pool 48,150
Special rate pool 9,200
The following motor cars were purchased during the year ended 31 March 2013:
Date of purchase Cost 
£
CO2 emission rate
Motor car [1] 10 April 2012 10,800 102 grams per kilometre
Motor car [2] 10 June 2012 20,400 140 grams per kilometre
The following motor cars were sold during the year ended 31 March 2013:
Date of sale Proceeds £ Original cost £
Motor car [3] 8 March 2013 9,100 8,500
Motor car [4] 8 March 2013 12,400 18,900
The original cost of motor car [3] has previously been added to the main pool, and the original cost of motor car [4] has previously been added to the special rate pool.

Required:

Calculate Capital allowances as at 31 March 2013.

The following allowances are to be used in answering the questions:

Capital allowances: rates of allowance
%
Plant and machinery
Main pool 18
Special rate pool 8
Motor cars
New cars with CO2 emissions up to 110 grams per kilometre 100
CO2 emissions between 111 and 160 grams per kilometre 18
CO2 emissions over 160 grams per kilometre 8
Annual investment allowance
First £25,000 of expenditure 100
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