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Where Taxpayers and Advisers Meet

WDA on Car (Asset)

8thegeorge
Posts:44
Joined:Wed Aug 06, 2008 3:24 pm
WDA on Car (Asset)

Postby 8thegeorge » Fri Jan 07, 2022 7:18 pm

Hello

Car, an asset of my IT business, is valued at £20000 at the start of year one. I claim allowance at 18% (£3600,modified by business/private use to £2000) at year end. Shall we say that the value is then £18000.
When I repeat the process at the end of year 2 should I start with a value of £18000 or the actual value of the vehicle at market price which may well be somewhat less that £18000, shall we say £16000?
The above figures are purely for example.

Many thanks

bd6759
Posts:3744
Joined:Sat Feb 01, 2014 3:26 pm

Re: WDA on Car (Asset)

Postby bd6759 » Fri Jan 07, 2022 10:15 pm

You have written it down by £3,600, so it’s value at the start of the next year is £16,400.

8thegeorge
Posts:44
Joined:Wed Aug 06, 2008 3:24 pm

Re: WDA on Car (Asset)

Postby 8thegeorge » Fri Jan 07, 2022 11:29 pm

Thank you for that. However I am now slightly confused. You say that I have written down, in my example, by £3600 and the car is then valued at £16400.
What about the effect of the personal/business use in calculating that write down?


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