Company received £40k capital contribution towards new kit from RDA

Company received £40k capital contribution...

Didn't find your answer?

Company client received £40k from RDA towards the cost of a new item of plant.

Is it possible to recognise the capital receipt as deferred income over 4 years being in line with the depreciation policy but claim 100% AIA?

Seems odd if you can as company could go bust 6 months later paying tax on only £10k but receiving AIA on £40k

Confused - thanks

Replies (4)

Please login or register to join the discussion.

avatar
By Chris Smail
25th Mar 2011 09:04

Not possible, necessary.

What else were you planning to do with it? 

Thanks (0)
avatar
By SE
25th Mar 2011 11:07

Grant

Chris - not possible to defer the grant i.e. straight net off and reduced AIA?

Thanks (0)
avatar
By Chris Smail
25th Mar 2011 14:20

Different treatments

 For Tax net off and claim CA on Net CA14100

 

In Accounts show assets as assets anfd Grants as Deferred Income SSAP4

Thanks (0)
avatar
By SE
25th Mar 2011 15:10

Grants

Thanks

Thanks (0)