Question 1

Stafford LTD is a UK registered company which commenced trading in the UK on 1 March 2020 as a manufacturer of Go Karts. Stafford Ltd published its first financial statements for the period 1 March 2020 to 31 December 2020. From the financial statements, the following information is provided:

Plant and machinery

During the year ended 31 December 2020, Stafford Ltd added the following tangible fixed assets to its business:

Cost
04 March 2020	Manufacturing machine	50,000
10 October 2020	Equipment for Research and Development	2,500
15 November 2020	Motor Vehicle Nissan Primera - Petrol	15,500

The motor vehicle Nissan Primera has emissions of 125g/km and is for the use of the CEO of Stafford Ltd. The following mileage is clocked for the vehicle:

10,000 miles for business purposes

4,000 miles for private travel purposes.

iii. Building

Stafford Ltd acquired a factory on 1 March 2020 for 440,000 (including 175,000 for the land).

During the acquisition, Stafford Ltd was in possession of the fact that an additional expenditure of 32,140 will have to be made to repair a damage to the buildings adjacent structure before it was deemed safe for manufacturing use. Payment was also made by Stafford Ltd for the construction and use of a new storage facility at a cost of 54,200. The facility is 1.5 miles away from the head office. The contract for the building was signed on1 April 2020, with the building brought into use from 1 November 2020.

Required:

Calculate the maximum capital allowances that Stafford Ltd will be able to claim on the capital expenditures made during the ten-month period of account ended 31 December 2020.