Annual Investment Allowance Change???

jmall99

Hi,

I have my business tax exam on Wednesday. When I started studying the course I printed the reference material FA2020 for exams from January 2021, the taxation tables in this reference material matched the one in my BPP books; however I've just tried the mock exams on the AAT website and the reference material has changed. So in taxation tables it used to have an annual investment allowance of £200,000 from Jan 2021, now its been removed, so it now says from Jan 2019 onwards is £1,000,000.

What figures should I use, as will change the capital allowance answer?

Pian32

Hey

It can be awkward when working between exam switches. I had to do it on my VAT at Level 3.

The best thing to do in this case, as it is a given value, is to use whatever is in the exam reference material since you don't have to memorize the figures.

Chiccoboy

Hi There, I am also seating my exams in March or April but have got the FA2019 books, would it be correct in assuming that I will be encountering similar problems? Would I need to buy the FA2020?

Pian32

You probably will. You might not need the whole book but I would see if you can find a differences guide.

Chiccoboy

Hi There, that's really helpful and thanks for checking if there is a differences guide. Cheers

Pian32

@jmall99 When searching for something else I came across a change to the FA2020 due to an extention on the AIA rules. This means you will probably have the £1,000,000 rule. Still if in doubt just use the figures given in the exam (I always double checked these and since they change you'll regularly be checking the current rules when doing the work.)

@Chiccoboy I seem to remember there was a differences sheet in the AAT resources when I had that problem but only for the first part of the year.

Chiccoboy

Thanks for your assistance with my enquiry.

AbbySpence

I have had exactly the same problem. The reference material on the AAT website does not refer to the change back to 200,000 as at January 2021 but my BPP book does. I think it's safer just to stick with what is provided in the AAT material!