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FYA or AIA

Hi to All,

My client has purchased computer equipment on finance lease with an option to buy (HP agreement). I know that under HP agreement, my client is entitled to claim capital allowances but the question is that should he claim annual Investment allowance or FYA?

The bottom line of my question is to find out the capital allowances treatment.

Kind Regards

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22nd May 2012 14:12

It doesn't sound like the expenditure is qualifying for FYA
FYAs are currently available at 100% but only on special types of qualifying expenditure eg energy-saving plant and machinery.

So in short, the answer is: AIA.

Remember that the AIA was reduced to £25k from 6 April / 1 April 2012.

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