BTC Time Apportionment
Ampsie
Registered Posts: 145 Dedicated contributor 🦉
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
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
0
Comments
-
yes, you do need to apportion WDA,0
-
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?0 -
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!
Ampsie0 -
apart from FRA, others are all time apportined0
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