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Annual Investment Allowance Query

Can own equipment introduced to a business be used to claim Annual Investment Allowance for 08/09 tax year?

Same query also regarding purchased second hand equipment.
New Business Virgin


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many thanks Ray for your authoritative response - I'm ashamed to say I wasn't aware of that restriction

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No FYA either

No - no FYA was due in those circumstances. The same restriction was in that case imposed by CAA 2001, s. 46(2), general exclusion 8.

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old rules
prior to AIA rules could FYA be claimed on assets introduced by sole trader to business eg laptop or scooter - where no allowance had ben claimed before?

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Thanks for comments
info much appreciated.

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I agree.

No AIAs for an existing asset brought into use in the trade. New CAA 2001, s. 38B, general exclusion 5, denies AIAs where s. 13 of CAA applies (use for trade etc of P&M originally acquired for other purposes). See Sch. 24, para. 2 of FB 2008.

No problem when buying used equipment from a third party.


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I can not guarantee it, but i don't believe that assets introduced at the commencement of trade would qualify for the AIA, on the same basis that they do not qualify for FYA under the old regime.

Assets that are purchased second hand from an unconnected party, I believe, are eligible for the AIA as the original trader will have suffered a reduction in their pool value.

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