Capital allowance query!!

marinemarine Feels At HomeRegistered Posts: 31
Hi

Just a quick question a client of mine bought a van in May 2009, for which i will be claiming 100% A.I.A, but because of the bad weather and current climate his takings are down,if i claim the whole £ 4300 (van cost) it takes him below the personal allowance by around £ 2000.

SO MY QUESTION IS CAN I CLAIM 40% FYA on the van rather than the A.I.A so that at least he will have some capital allowances to offset against next years tax?

Thanks in advance

Tim

Comments

  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    you can only claim the 40% FYA after the 50,000 AIA has been claimed
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    the other option is you could put the van in the gen pool and ignore the AIA and only get 20% which means you get allowence will have to check but am sure you can
  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    You can always put it in the general pool of assets and, instead of claiming 20%, claim nothing. You don't have to claim CAs, you can keep them for the following years.
  • Anne BoleynAnne Boleyn Well-Known Registered Posts: 196
    Capital Allowances

    Hi Marine

    I thought you were able to restrict the AIA. For example, profit 10,000 take 3,525 under AIA and then place remaining in the pool for following year. In the following link, the penultimate heading, second paragraph.

    http://www.hmrc.gov.uk/manuals/camanual/CA23085.htm

    Of course I may be wrong, more experienced posters may correct me.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,069
    I agree with Anne Boleyn.
    Businesses may choose whether or not to claim the AIA or to claim part only of their AIA if they so wish (CAA01/S51A(7)).
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