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Annual Investment Allowance

The company I am working on has made capital expenditure of well over £100k. However CCH Cortax has limited its Annual Investment Allowance to £91k. The accounting period is 1 May 2010 to 30 April 2011. Any idea how CCH got to that figure of £91k? Thank you

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02nd Nov 2011 11:02

Apportionment to 31 March 2011?

Comes out to £91,781

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By aaron01
02nd Nov 2011 11:06

I know there is some apportionment that needs to be done. I just cant seem to work it out. Could you show how you worked it out? btw, your figure is exactly what is shown in CCH Cortax.

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By BKD
02nd Nov 2011 11:12

Something wrong with CCH?

As the post above says, £91,781 would be the allowance available for an accounting period 1 May 2010 to 31 March 2011 (335/365 x £100,000). Seems to have forgotten about the month of April 2011!

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By aaron01
02nd Nov 2011 11:18

That's the thing that is getting me confused. If we include April 11, should the allowance not get back to £100,000?

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Not changes in annual limits

The effective changes for annual limits were 1/4/2010 and 1/4/2012 so the whole of your period qualifies.

I assume that there are no other companies who have already used part of the annual allwance due to the group?

I would then fall back on the type of mistake I would have made which is to have not given a date to an asset purchase so that the software didn't put it in the right period. I would also look on the Cortax forums to see if this is a known issue.

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03rd Nov 2011 12:54

Was there any expenditure in April?

Two separate periods so need to put dates in

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By aaron01
02nd Nov 2011 11:31

There was some expenditure in April 11 and I put them in with the relevant dates. Maybe its just an issue with the software.

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By GaryMc
02nd Nov 2011 11:51

Missing an update?

Are you missing an update that includes 2011-12 rates and allowances?

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By blok
02nd Nov 2011 12:10

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we use cch cortax, we are on version 12.

sounds like you may need an update.

 

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By aaron01
02nd Nov 2011 12:22

we have latest version

We do have the latest version. I checked whether the updated figures are on the system for Tax year 2011 as well. Just called CCH Helpline and they are not sure why this is the case. They will call me back. Thanks anyway

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By blok
02nd Nov 2011 12:35

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just set up a dummy on my cch and had an AIA of £100k. 

You sure you have got the dates exactly right and you havent used an 11 month period?

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By aaron01
02nd Nov 2011 13:46

The period is a normal 12 month period. The company has been running for more than 10 years. If I go under activities>common/shared data>rates and profit limits, I can see £100k as being AIA

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By blok
02nd Nov 2011 14:03

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me too. if you find out what the issue is I would be interested to hear.

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By aaron01
02nd Nov 2011 15:58

new capital allowance movement

I just got a call from CCH and they told me to do the following:

1) Go to Activities>common/shared data/Capital Allowance movement

2) I had to create a new Capital Movement list since there was nothing relating to AIA. To do that, click on New

3) Under description, type in Annual Investment Allowance

4) Rule is Acquisition

5) IA rate is 100%

6) Tick the box which says 'Is AIA'

7) Under Type, tick all the 3 boxes

8) Under 'Applies to' , tick the following : General pool, Long Life pool, Special rate pool and other Assets.

9) Ok that and go back into the client database

 

So next time, if you have Cap expenditure of say £150,000, the first £100k will be recorded under the new capital movement description: Annual Investment Allowance and the £50k will be classified under Additions..

 

I do not know if you were having the same problem as I was, but that was the solution I was provided with and it is now working fine.

 

 

 

 

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By blok
02nd Nov 2011 16:02

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I have not needed to do that, maybe someone in this office has done it and not told me.

It does seem like something that you should not need to do because it looks pretty fundamental to the programme.

Oh well. so long as its fixed!

 

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