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Our client does not need to claim all of the annual investment allowance - can we restrict like do with Capital Allowances - I believe so. But mind gone blank - thanks !


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By plummy1
22nd Nov 2011 01:14


You can only claim what has been spent up to the maximum of £100k. You cannot claim for more than was spent if that is what you are asking. Hope this helps.

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22nd Nov 2011 09:07

All or nothing

I don't think plummy has got your point.

if the asset qualifies for the AIA, I would think you could either claim the full AIA or claim none of it.

EG, if the asset purchase was £5k, you could either claim the £5k or claim nothing, you couldn't claim, say £2k.

One important point is that if you don't claim the AIA, the asset is added to the relevant pool for WDA in the following year, it doesn't qualify for AIA again in year 2.

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22nd Nov 2011 09:40

Part claim of AIA is fine

Sorry to disagree with you JC but you can restrict an AIA claim to the most beneficial amount. CAA 2001 s51A(7) says:

'A person may claim an annual investment allowance in respect of all the AIA qualifying expenditure in respect of which the person is entitled to an allowance, or in respect of only some of it.'

It is confirmed in the HMRC CA Manual here: 

So, as pre AIA, you can claim less to preserve personal allowances etc. Of course, as JC says, you can't claim the balance of AIA in later  years, you just claim WDAs.


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22nd Nov 2011 09:41

All, part or none

You can claim AIA on all of the qualifying expenditure (subject to the £100k max) or as little as you like (see Section 51A(7) CAA 2001).

Therefore, if your qualifying expenditure is £50k, then you claim anything up to £50k.

So in JCresswell Tax's example, I don't think there's anything to stop you claiming only £2k on £5k expenditure, though why you'd want to, I don't know!

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07th Oct 2013 18:35

rectricted AIA

It's relevant to people earning at around the personal allowance, so you don't waste any of the PA.

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By refs8
22nd Nov 2011 09:53


Thanks everyone as I thought and can now proceed.

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