easy capital allowance question

JodieR
JodieR Registered Posts: 996 Beyond epic contributor 🧙‍♂️
edited June 18 in AAT member discussion
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.

Comments

  • SarahJS
    SarahJS Registered Posts: 271 Dedicated contributor 🦉
    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
    JJH1969 Registered Posts: 110 Epic contributor 🐘
    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
    villapb Registered Posts: 357
    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

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