Main pool part 2

In this lesson

1. 0:00 Private use assets in main pool
2. 1:01 Calculating allowances with private use
3. 2:42 Main pool with short accounting periods
4. 4:12 Disposal of all main pool assets
5. 6:11 Balancing allowance on trade cessation
6. 8:30 Small pool writing down allowance

About this lesson

accounting periods. You'll also discover what happens when all main pool assets are disposed of, how balancing allowances and charges work when trade ceases, and when the small pool writing down allowance applies—all essential techniques for the TX paper. The video works through multiple worked examples with Bonnie and Hanna to show you exactly how to separate private use assets into their own columns, calculate the full writing down allowance, then claim only the business proportion. You'll see how to prorate allowances for accounting periods shorter or longer than 12 months, why disposing of all main pool assets doesn't trigger a balancing allowance during trading, and how the rules change completely in the final year of trade. The small pool rule—where balances of £1,000 or less can be written off in full rather than claimed at 18%—is explained clearly with practical examples to help you spot it in exam questions.

Duration: 10m