Capital Allowances V AIA

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T J
T J Registered Posts: 26 Regular contributor ⭐
If using the AIA would create a loss, can the amount spent on equipment during 08-09 be put in the general pool for capital allowances instead?

i.e. if the AIA didn't exist the 20% wda would just work out nicely to bring the client's taxable income to £6100, less pa of £6035

Any thoughts?

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  • Jon1
    Jon1 Registered Posts: 11 New contributor 🐸
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    Hi

    Capital allowances are quite flexible, so as long as you don't exceed the maximum available you should be able to restrict your claim to the personal allowance. However, have you considered claiming the full allowances and carrying the loss back.

    Kind Regards
    Jon
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    I agree with Jon. You can claim as much or as little of any CA claim as you like.
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