BTC Time Apportionment

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Ampsie
Ampsie Registered Posts: 145 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
If a cap is less than 12 months, you need to time apportion the AIA allowance.

Do you also time apportion the wda amounts?

eg pool balance is £11,500 so 20% = £2,300
If it was a 10 month cap do you do 2,300x10/12
or is the whole 2,300 allowable?

I'm getting confused!
Ampsie

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  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    yes, you do need to apportion WDA,
  • Ampsie
    Ampsie Registered Posts: 145 Dedicated contributor 🦉
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    meibaker wrote: »
    yes, you do need to apportion WDA,

    That's what i thought - thanks!

    What had confused me was doing a question from the practice exams in the Osbourne book.
    It was an cap of 10 months
    AIA spend was 79,000
    AIA allowance 50,000x10/12 = 41,667

    So 41,667 claimed leaving a balance of 37,333. This was allowed 40% wda, but it wasn't time apportioned. The allowance was 14.933.

    Why is this not time apportioned?
  • Ampsie
    Ampsie Registered Posts: 145 Dedicated contributor 🦉
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    Ah - penny has just dropped!

    The 40% isn't a wda it's a FYA so no need to apportion it!

    I hope my brain works faster than this tomorrow morning!

    Ampsie
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    apart from FRA, others are all time apportined

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