Capital allowance on a car

[redsonnet]

The car (used as a taxi) was bought on the 2nd September 2008, so the rules for pre 6th April 2009 still apply. The car cost £3320

2008/9
----------
£3320 less sale of previous taxi £400 = £2920

20% £2920 = £584
90% work use = £526 capital allowance

2009/10
----------
£2920-£526 = £2394

20% £2394 = £479
90% work use = £431 capital allowance

2010/11
----------
£2394-£431 = £1963

20% £1963 = £392
95% work use = £373 capital allowance

2011/12
----------
£1963-£373 = £1590

20% £1590 = £318
95% work use = £302 capital allowance

Are these calculations correct?
As far as I can see, a total of five years is allowed - is that correct? What happens to the balance after that?

Thanks,
Jan

 

[Scalloway]

Even though you are only claiming 90% of the capital allowance you must deduct 100% before you calculate the next year. You continue claiming capital allowances until the value of the car is £1, when you can write it off.

 

[redsonnet]

Even though you are only claiming 90% of the capital allowance you must deduct 100% before you calculate the next year. You continue claiming capital allowances until the value of the car is £1, when you can write it off.

Thank you so much for your response.