BTC Time Apportionment

Ampsie

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

meibaker

yes, you do need to apportion WDA,

Ampsie

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

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

apart from FRA, others are all time apportined