Annual Investment allowance

Dottie
Dottie Registered Posts: 99 Regular contributor ⭐
edited June 18 in AAT member discussion
Just having a moment....

Sole trader net profit £11,500, but bought a new van for £10,500. Can I restrict the AIA this year? If I do, do I claim capital allowances on the balance carried forward in the next year?

Thanks

Dottie

Comments

  • JodieR
    JodieR Registered Posts: 996 Beyond epic contributor 🧙‍♂️
    yes, you can restrict the AIA and then claim 20% of whatever's left in future years.
  • AcWise
    AcWise Registered Posts: 2 New contributor 🐸
    Don't forget that the amounts that you can calim are being reduced 20% will become 18%
  • Monsoon
    Monsoon Registered Posts: 4,020 Beyond epic contributor 🧙‍♂️
    Agree that you can restrict the AIA to bring profit down to personal allowance (or whatever's appropriate) and then put the balance in the pool and take WDAs in future years.

    18%. Stingy b***ers!
  • Dottie
    Dottie Registered Posts: 99 Regular contributor ⭐
    That's what I thought, but just had a moment of doubt. Didn't realise capital allowances was being reduced to 18% though, so glad I asked the question!

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