BTAX, AIA limit 2016
marcin_karpinski
Registered Posts: 5
Hi everyone,
What is the Annual Investment Allowance (AIA) limit in 2016?
"Business Tax, FA 2015" by Osborne Books, page 6.13 says:
"The AIA limit change from £500,000 to £25,000 occurred on 1 January 2016 for income tax payers (self-employed and partners)"
also, page 3.5:
"...£500,000 per year for CAPs ending on or before 31/12/2015. The limit is £25,000 for CAPs starting on or after 1/1/2016".
However, the HMRC website says the limit from 1 Jan 2016 is not £25,000 but £200,000:
https://www.gov.uk/capital-allowances/annual-investment-allowance
"The AIA amount
The AIA amount is £200,000. This is for 12-month periods from 1 January 2016."
My question is: what is AIA limit in 2016? Is there a mistake in Osborne BTAX textbook, or is there anything I don't understand about Annual Investment Allowance limits?
thank you
Marcin
What is the Annual Investment Allowance (AIA) limit in 2016?
"Business Tax, FA 2015" by Osborne Books, page 6.13 says:
"The AIA limit change from £500,000 to £25,000 occurred on 1 January 2016 for income tax payers (self-employed and partners)"
also, page 3.5:
"...£500,000 per year for CAPs ending on or before 31/12/2015. The limit is £25,000 for CAPs starting on or after 1/1/2016".
However, the HMRC website says the limit from 1 Jan 2016 is not £25,000 but £200,000:
https://www.gov.uk/capital-allowances/annual-investment-allowance
"The AIA amount
The AIA amount is £200,000. This is for 12-month periods from 1 January 2016."
My question is: what is AIA limit in 2016? Is there a mistake in Osborne BTAX textbook, or is there anything I don't understand about Annual Investment Allowance limits?
thank you
Marcin
0
Comments
-
It is now set at £200,000 from 1st jan 2016 but the initial budget had planned to revert to £25,000 before the change was announced in the Summer.
Probably the books had already been printed by then. Tax is a nightmare for publishers!5 -
Thank you MarieNoelle
So if during an exam I need to calculate AIA limit for 2016, should I use £25,000 or £200,000 limit?0 -
Best you ask your tutor about this or the AAT directly.
Maybe @James_B can find out for you?0 -
Hi, I've asked our assessment team and should get a response tomorrow. Thanks
1 -
Sorry for the delayed response, here's the answer:
Our current tax assessments are based on Finance Act 2015 and will be until 31 December 2016, so it’s £25,000 right now. You can find this and other useful information in-assessment via the Taxation data 1 pop-up – here it is in the sample (it’s the same in the live assessment and the same in every question) with AIA second top:
6
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership