Capital Alowances Question

sometimesconfused!

Is there anyone who can help answer this quick question please?

In tax year 2007/2008 my husband brought a van for £9600 and we claimed £4800 capital allowances. Looking at this years 2008/2009 self assessment am I right in thinking that we will be claiming £1200 being 25% of the remaining £4800? Or because of the changes in 2008 are we able to claim the remaining £4800?

Thanks in advance

Pennywise

The rate has changed to 20% for 08/9, so all you can claim is 20% of the remaining £4800 which is £960. Unless the rates change again, next year, 09/10 you claim 20% of the reducing balance again, i.e. 20% of £3,840 which is £768 and so on until you sell or px the van.

sometimesconfused!

Pennywise thank you so much for replying

So wish now that we had held off and brought within 08/09 where we could of claimed for it all!

Money_Grabber13579

You might also need to use the hybrid rate, which could be anything between 20-25%, if your year end straddles the 5th April. This needs to be calculated on a daily basis.

John_Pierpoint

and in 09/10 you might have benefited from the scrappage allowance?