Business & Personal Tax Help!

snooop
snooop Registered Posts: 18 Dedicated contributor 🌟 🐵 🌟
I did both of these exams in 2007 and will be resitting them next week. I have been told there have been a few changes to capital allowance and chargeable gains so most of my revision has been a waste of time! I been to waterstones to get the latest osbourne book but they had none in stock.

I would be very grateful if someone can highlight the major changes please pretty please :001_smile:

Many thanks in advance.

Comments

  • tallrodney
    tallrodney Registered Posts: 24 Dedicated contributor 🌟 🐵 🌟
    There is an article on the AAT website that highlights the major changes for both papers.

    In summary capital allowances have changed the sytem is now:

    Annual Investment Allowance £50,000 per year (time apportioned for shorter caps)

    First year allowances 100% for Fuel efficient cars and energy efficient plant.

    Writing down allowances these are now 20% (again time apportioned and adjusted for personal use)

    If the main pool drops below a £1,000 they can claim a small pools balancing allowance.

    There is also Entrepeneur's relief which is new for this sitting.

    The BPP book is also very good
  • Londina
    Londina MAAT, AAT Licensed Accountant Posts: 814
    I have this word document Snoop, if you give me your email address, I can email to you the rest!

    Changes to tax exams in 2009
    Karen Boyd, Chief Assessor for Units 18 and 19

    Finance Act 2008 brought about many changes to the tax rules that are examined in units 18 and 19, known as BTC and PTC. The main change that affects BTC is in capital allowances, and this article gives you a comprehensive example. The changes to PTC are such that the June 2008 exam paper has been redrafted to incorporate the new rules. A copy of this paper, with accompanying answers, is available on the AAT website.

    Capital allowances

    The biggest change to the BTC exam is the way in which the capital allowances are calculated. You must fully understand all the rules for the June 2009 exam onwards.

    THE NEW RULES: there are three main allowances, two of which will be familiar to you, and other one being new.

    • First year allowances: these are available on low emission cars (defined as emitting less than 110g/km of CO2), and water efficient and energy saving plant. This allowance is 100%.
    • The writing down allowance has been reduced to 20%.
    • Annual investment allowance (AIA) is the new one. This is a 100% allowance for the first £50,000 of expenditure incurred by businesses and companies.

    In addition to these allowances, there are two areas that you must fully understand:

    • The WDA of 20% is in addition to the AIA.
    • The WDA on cars costing more than £12,000 is the lower of 20% or £3,000. This means that for cars costing between £15,000 and £12,000, the WDA will be at 20%, and not £3,000 as previously.

    The impact of these changes has been a radical change in the layout of the capital allowances computation – you must ensure that you learn and understand this layout.
  • snooop
    snooop Registered Posts: 18 Dedicated contributor 🌟 🐵 🌟
    There is an article on the AAT website that highlights the major changes for both papers.

    In summary capital allowances have changed the sytem is now:

    Annual Investment Allowance £50,000 per year (time apportioned for shorter caps)

    First year allowances 100% for Fuel efficient cars and energy efficient plant.

    Writing down allowances these are now 20% (again time apportioned and adjusted for personal use)

    If the main pool drops below a £1,000 they can claim a small pools balancing allowance.


    There is also Entrepeneur's relief which is new for this sitting.

    The BPP book is also very good[/QUOTE



    Many thanks your a star just hope I get my head around it by next week.
  • SWEETY
    SWEETY Registered Posts: 4 New contributor 🐸
    There is an article on the AAT website that highlights the major changes for both papers.

    In summary capital allowances have changed the sytem is now:

    Annual Investment Allowance £50,000 per year (time apportioned for shorter caps)

    HI
    HOW ARE YOU ??? I HOPE YOUR OK WITH REVISION EXAM

    I have question about this rule ,, i'm do not understand annual investment allownce ??

    becuse i have obsorne book for tax 07/08 year

    can you explain me how deal with AIA = means only deduct 50000 for plant & machinery
    what about car?? also deduct or not :huh:

    please hellllllllllllllllllllllllllllllllp me :001_unsure::crying::001_unsure::crying:



    thank you very much

    sweet
  • gillwilson
    gillwilson Registered Posts: 41 💫 🐯 💫
    There is an article on here that explains in detail and gives a good example. You must read it it will def be in exam.

    Try searching the news articles - it is called changes to Tax exams from June 2009.

    Hope this helps

    Gill
  • SWEETY
    SWEETY Registered Posts: 4 New contributor 🐸
    There is an article on here that explains in detail and gives a good example. You must read it it will def be in exam.

    Try searching the news articles - it is called changes to Tax exams from June 2009.

    Hope this helps

    Gill

    Already i was reding but only there one case for AIA DEDUCT from plant and machinery , how about car ???
    any one have new book for tax 2008/2009 to show me the example or write the rule for 2 mothed plant and car ???


    please hellllp me

    thank alot
  • hanapospis
    hanapospis Registered Posts: 111 🎆 🐘 🎆
    Hi,

    The AIA applies to virtually all plant and machinery except cars up to a total amount of £50.000 per year. (If you have a shorter period you have to time apportion it).

    If you buy a car which cost more then £12.000 it automatically goes to the single asset pool. If the car cost less then 12.000 it goes to general pool (no AIA allowable). If the car is low emission ( up to 110grams per km of CO2) it applies to FYAs.

    If you are still not sure I can scan the chapter in my book and send it over to you.
Privacy Policy