AIA and interaction with disposal
I have a client who is in his second year of trade.
As we did not claim all of his AIAs last year as they were not needed we have a balance in the brought forward pool of 10k.
One of the items purchased last year has had some enhancement expenditure on it this year (2k) and it was sold in this year for 15k.
Other items have been purchased totalling 50k. (We do not need to claim all as AIA, only circa £30k)
I was wondering 2 things, firstly does the enhancement expenditure qualify for AIA as asset sold in same year?
Secondly, is there a balancing charge in the pool (ie 10k less 15 disposal proceeds) giving a 5k charge and then I will claim the balance of what I need as AIA before transferring remainder into the pool to be carried forward.
Do I simply deduct the disposal proceeds from the Additions qualifying for AIA, give what I need as AIA and trans balance to pool.
The end result is the same, its just what is correct? Method 1 gives an AIA of 30 and a Bal Charge of £5k, whereas Method 2 will just give an AIA of 25
CA23086 seems to suggest Method 1 is correct - however the layout of the software suggests perhaps 2 is correct.
- Using profits from Ltd company as start up funds for new venture 32 1
- Capital payments offshore trust 62 1
- Pay in Lieu of notice 63 2
- Gift with reservation, IHT & CGT 90 1
- Splitting hairs with a national firm 1,087 9
- Sage 50 re-key - VAT problem 71 2
- Unreimbursed employee expenses 170 1
- Deduction from Salary 457 11
- Doctor and Locum Work 141 2
- State pension 123 1
- NALS Accountants Report 287 4
- Sage valuing foreign bank balances 257 6
- Has anyone read the implications of the Lisbon treaty? 1,119 40
- CIC Company 617 11
- simple one...capitalisation of legal fees on purchase of business 275 6
- This is getting boring 468 10
- 27,000 Really? 731 24
- VAT on printing when being a third party 104 2
- ACCA Cert/Dip in IFRS 200 3
- Farm barn lettings 134 2
- Property exchange - 8-year legal delay following fall-out 632
- Cancelled 374
- SAGE Payroll Data for Import to MS Dynamics AX 348
- Cancelled 322
- Have you staged yet for auto enrolment? 298
- Probiz 287
- Free-standing washing machine - unfurnished lettings 256
- VAT on non-profit making clubs (ECJ VS West Dorset Golf Club) 245
- Phishing emails purporting to be from CIPFA? 214
- Is this UK incapacity benefit taxable in UK or Jersey? 190