In DSL Ltd.'s 2022/23 financial year, the acquisition of secondhand machinery for £19,000 impacts the capital allowance calculations for the pooled assets. The company had an opening pooled asset value of £63,000 (WDV) at the start of the year.
When calculating capital allowances, the newly acquired secondhand machinery for £19,000 would be added to the existing pooled assets. This addition increases the total pooled asset value available for capital allowance computations for the year.
Therefore, the correct statement concerning DSL Ltd.'s 2022/23 financial year is:
The total pooled assets available for capital allowance purposes at the end of the 2022/23 financial year will be the sum of the opening pool value (£63,000) and the cost of the newly acquired secondhand machinery (£19,000), resulting in a total pooled asset value used for capital allowance calculations.
This total pooled asset value will form the basis for determining the annual capital allowances, which represent the tax-deductible amounts a company can claim on the depreciation of assets for tax purposes.
The higher pooled asset value due to the addition of the secondhand machinery will likely result in increased capital allowances, positively impacting DSL Ltd.'s tax position for the financial year.