Aia

Hollysan

Hello everyone,

Does anyone know if you can claim AIA on an asset (a van in this case) in the years following its purchase? i.e client bought van last year, 100% allowances would have been wasted so we claimed normal WDA at 20%, with the balance added to the pool. Now that the WDAs have been reduced and client's profits increasing I am considering advising client to claim as much as possible as soon as possible, but is the AIA still available in these circumstances?

Many thanks for any help offered.

Hollysan

Monsoon

AIA can only be claimed in the first year. If you claimed WDA and added the balance to the pool, only WDAs can be taken going forwards.

So in your case, the AIAs have been lost as they weren't efficient to take in the first year.

As a side note, if it had been efficient to take between 20% and 100% in the first year (e.g. 59% allowance would have brought everything down to the level of personal allowances) then you are allowed to restrict the AIA to the % you want and put the balance in the main pool, it's not a strict choice between 100% AIA or plain WDA.

Hollysan

Hi Monsoon,

Thanks for the reply. Yes, I did actually claim some AIAs, for other assets purchased, just didn't make sense to claim for the van as well. Oh well, he will get the benefit of it, but spread over several years...

Many thanks.

Hollysan

groundy

If it is a limitedc company you are better claiming AIA and carry forward loss, although I presume sole trader in this instance.

Hollysan

Thanks Groundy but yes, client is a sole trader.

Hollysan