188体育

Disposals: Example

The following example was when the written down allowance for the Special Pool rate was 8%. The current rate is 6%.

A large ro-ro ship (a long life asset for CA purposes) is acquired for 拢100m on 1 January 2012 by cross-Channel operator, Victory Ferries Ltd, by way of a lease from their bank.听 Victory Ferries Ltd has elected for tonnage tax with effect from 1 January 2000.

The bank's leasing subsidiary, Firth Ship Leasing Ltd, claims capital allowances for the year ended 31/12/2012 and for year ended 31/12/2013.

The ship is sold by Victory Ferries Ltd, as agent for Firth Ship Leasing Ltd, for 拢90m on 1/5/2014.

The capital allowances available to Firth Ship Leasing Ltd are as follows (amounts in 拢鈥�000s):

Accounting period ended 31 December 2012

拢	8% pool		8% pool		Non-qualifying		Total allowances
Cost (100,000)	40,000		40,000		20,000		-
WDA	3,200		3,200		-		6,400
Balance carried forward	36,800		36,800		-		-

听

Accounting period ended 31 December 2013

拢	8% pool		8% pool		Non-qualifying		Total allowances
Balance brought forward	36,800		36,800		20,000		-
WDA	2,944		2,944		-		5,888
Balance carried forward	33,856		33,856		-		-

听

Accounting period ended 31 December 2014

拢	8% pool		8% pool		Non-qualifying		Total allowances
Balance brought forward	33,856		33,856		20,000		-
Sold (90,000)	(36,000)		(36,000)		(18,000)		-
Balance	(2,144)		(2,144)		2,000		-
BC	-		-		-		(4,288)

听

Summary

Net allowances given: 拢8,000

Net cost to lessor: 拢10,000

References

Treatment of disposal proceeds听听TTM10450