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Annual Investment Allowance

StrantonaStrantona New MemberRegistered Posts: 14
Im confused a little, Ive been reading about the new Annaul Investment allowances upto 50 K.

I understand a lot of it but I was thinking that if Limited companies have up to 50k allowance then does this mean there is going to be a lot of Limited Companies out there with great Losses to carry forward.
Also how you suppose to take a dividend out of a loss situation because of this capital allowance or am I missing something.???

Does anyone know where i can get some more information on this

Think I gonna have to go on another learning course........ again....


  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    Whatever you don't use in a year - you lose! You don't get to carry the excess forward.
  • Peter WPeter W Settling In Nicely Registered Posts: 22
    A loss for tax purposes does not affect the amount of dividend that can be paid out :)
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Peter W wrote: »
    A loss for tax purposes does not affect the amount of dividend that can be paid out :)
    Exactly. You still depreciate the assets in the accounts in the normal way, it's just the tax adjustments that are different. In fact, there will be more distributable profit as the CT will be much lower with AIA.
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