easy capital allowance question

JodieR

Accounts are drawn up for more than a year so i'm apportioning them to complete 2 corporation tax returns. Do the capital allowances get apportioned too or claimed in the period they were incurred? I'm pretty sure it's the latter but can't find confirmation.

SarahJS

I'm sure it's in the period it was incurred... I remember it from exams! I don't have a book handy to back it up though, sorry!

JJH1969

You do a separate calculation for each period. One for the 12m period and one which has WDA @ 20% x Months/12. The AIA gets apportioned over the number of months too.

villapb

There is no obligation to claim CAs in any particular year. If no claim is made, the value for CAs is simply carried forward unchanged. Alternatively, a part claim can be made. This may be useful if a small profit is made, and the trader's personal allowance would be wasted if CAs were claimed