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AIA and Pool write off example

Please could I clarify the amount I am able to write off from the following example:

I have a bfwd pool balance of £675 from 2007/08
There are AIA qualifying purchases in 2008/09 of £350

Can I write off the £675 and also claim the £350 i.e capital allowance of £1025 for 2008/09, or is it only the £675 brought forward?

Thank you
Gilly
Gillian Keenan

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For a ltd company
For a company, the small pool write off applies to APs commencing on/after 1 April 2008.

So if the client in Gilly's example had been a company rather than an individual, the claim available would be for £1,025 being AIA of £350 & WDA of £675.

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AIA thank you
Thank you Mark.

I have just missed the date as AP is 01/04/08 to 31/03/09.


Regards

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Depends on your accounting date..
The Small Pool limit of £1,000 (pro-rated) only applies to APs that start on or after the relevent date (06/04/08).

So, if your AP is 06/04/08 - 05/04/09, no problem. If your AP is (for example) 01/01/08 - 31/12/08, then you will have to wait until next year to claim the full balance, just claiming your "hybrid WDA" this year on the bfwd balance.

Re AIA, again assuming the expenditure was incurred on or after 06/04/08 (and no related trades etc, etc.) then you can claim the £350 AIA

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31st March could be 5th April?

As HMRC very often treat a 31/3 year end as a 5/4 one for tax (certainly for overlap) do you think the same can apply here and small pool write off could be allowed?

 

Certainly the HMRC Self employment notes for the SA return makes no mention of the dates this applies from and their own draft capital allowance manual makes no mention of it.  Makes me think they will be quite relaxed about this.  Anyone unrepresented who followed the HMRC self assessment guide would claim it no matter when the AP started!

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