Accounting · Capital Allowances
During the year ended 31 March 2025, Edam Ltd, a VAT-registered company, purchased a second-hand lorry for £198,000 (including VAT of £33,000). On 1 April 2024, Edam Ltd had a tax written down value brought forward on the main pool of £15,000. Lorry costs are recorded net of VAT (£165,000) and second-hand commercial vehicles qualify for the 100% Annual Investment Allowance (AIA). What are the maximum capital allowances that Edam Ltd could claim in the year ended 31 March 2025?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1£167,700✓
- 2£32,400
- 3£38,340
- 4£200,700
Correct answer
£167,700
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