»Ê¹ÚÌåÓýapp

A university lecturer acquires a computer on 6 April 2003 for research purposes. »Ê¹ÚÌåÓýapp requirements of EIM70790 are met and they are entitled to capital allowances. »Ê¹ÚÌåÓýapp computer cost £6,000 and was financed by a loan on which they paid interest of £600 in 2003 to 2004. 25% of their use of the computer is for private purposes. »Ê¹ÚÌåÓýappy are entitled to capital allowances to the extent of the business use, see EIM36570. »Ê¹ÚÌåÓýapp computation for 2003 to 2004 would be:

• cost: £6,000
• Writing Down Allowance (WDA): £6,000 × 25% = £1,500
• residual value: £6,000 - £1, 500 = £4,500
• WDA business element: £1,500 × 75% = £1,125

Relief is available to the same extent for interest paid.

£600 × 75% = £450

Relief for £450 is available against general income.