emma1985

I’m under the impression from my BPP F6 book that “the maximum WDA is £3000” for expensive motor cars. I took this to mean that it’s the usual 20% WDA - capped at £3000.

I’m doing a question in said (often inaccurate) BPP book:
Account period 1.7.09 - 30.6.10
15.7.09 Car purchased £13.400
Private use 20%. Not a low emission car.

I calculate the WDA in 09/10 to be £2,680 - a straight 20% - of which only 80% would be allowed - £2,144

The answers tell me:
Expensive car (80%) Allowances
Addition £13,400
WDA @ 20%/max (£3,000) x 80% = £2,400
TWDV £10,400

Why is the WDA £3,000???

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sjbherself

I agree totally with your calculations.

I suspect what has happened is that they have not updated for the fact that WDA's changed from 25% to 20%. If you calcuated at 25% the WDA would be £3350 which you would have to restrict to £3k.