Capital Allowances and WDA
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Hi
With regards Capital Allowances; am I right in thinking that as a small business I can take 50% capital allowances against my office furniture and computer equipment, and then take 25% reeducing balance method after that.
Is this instead of depreciation?
What is the bookkeeping for it? I only ever studied depreciation, and have never dealt with this before.
Do you need to keep an 'provision for accumulated capital allowances' type of account.
Help greatly appreciated.
With regards Capital Allowances; am I right in thinking that as a small business I can take 50% capital allowances against my office furniture and computer equipment, and then take 25% reeducing balance method after that.
Is this instead of depreciation?
What is the bookkeeping for it? I only ever studied depreciation, and have never dealt with this before.
Do you need to keep an 'provision for accumulated capital allowances' type of account.
Help greatly appreciated.
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Comments
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Re:Capital Allowances and WDA
Hi Anna.
Certain plant & machinery qualify for a 40% First Year Allowance, then in subsequent years a 25% Writing Down Allowance is given.
For small businesses a 50% First Year Allowance is given on expenditure in the 04/05 & 06/07 tax years only.
This is instead of depreciation.
Scott.0