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Annual Investment Allowance Query

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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09th Jul 2008 11:44

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

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08th Jul 2008 18:02

No FYA either
Nick

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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08th Jul 2008 11:35

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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By Anonymous
07th Jul 2008 10:44

Thanks for comments
info much appreciated.

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03rd Jul 2008 21:49

AIAs
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.

Ray

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By Anonymous
03rd Jul 2008 15:34

unlikely...
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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