Business Tax - Capital Allowances

chrischant
chrischant Registered Posts: 3
in AAT Level 4 (Level 8 in Scotland)
I completed level 4 last year but didn't do business tax because my provider didn't give us options. I'm currently self studying the module and i'm a bit unsure about capital allowances: As a soletrader, If I were to purchase a fixed asset for £10,000 then in the year of purchase I would claim 18% AIA. In the following year do I then claim 18% WDA on the £8,200 balance?

Comments

  • PeterC
    PeterC Registered, Tutor Posts: 245 Dedicated contributor 🦉
    The AIA, where eligible (which this is), is 100%. Therefore the capital allowance in the year of purchase is £10,000 and nothing in subsequent years
  • chrischant
    chrischant Registered Posts: 3
    Thanks for that - clearly much more simple than i was making it in my head!

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