AIA time apportionment

its a partnership business a/c.
new machinery was bought in auguest 2009 for £53,200, a car with CO2 emission of 100g/km was bougth in sep 2009 for £12,000 for a salesman! calculate the capital allownace for year end 5 april 2010
the problem i am having is do i use the whole year 50k AIA, or time apportined
....................AIA/FRA
............PLANT..55,400
.............AIA....(50,000)
..........FRA40%(2160)
......................3240
i am confused at the moment,please someone help!

Comments

  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 🎆 🐘 🎆
    If the accounting period is 12 months long, you have 50k for AIA, no apportionment.
  • meibaker
    meibaker Registered Posts: 481
    thank you!
  • SLM
    SLM Registered Posts: 64 💫 🐯 💫
    As monsoon says you only apportion the AIA if your accounting period is shorter/longer than 12 months.

    The car's CO2 emissions are less than 110g/km so it qualifies for 100% FYA. So therefore the full £12,000 is deducted as an allowance.
  • meibaker
    meibaker Registered Posts: 481
    thanks SLM,
    just reading through my book, notice this parts, but not sure if i understand right,
    An asset with some private use by an employee, not the busines owner, however suffers no restriction, the business is entitled to full capital allownace on such assets,
    so for example, the car bought for employee with 25%private use is not deducted?? am i understand this right?
  • SLM
    SLM Registered Posts: 64 💫 🐯 💫
    Private use is only deductible if it is the business owner and the business is not a company.. therefore a sole trader or partnership. I am sure that is right but someone will correct me if I am wrong.
  • meibaker
    meibaker Registered Posts: 481
    SLM wrote: »
    Private use is only deductible if it is the business owner and the business is not a company.. therefore a sole trader or partnership. I am sure that is right but someone will correct me if I am wrong.

    thank you SLM!
    hope there are no tricky questions next tuesday!
    good luck with your exams!
  • SLM
    SLM Registered Posts: 64 💫 🐯 💫
    Thankyou and good luck to you too!
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