A prospective client has previously done his own self assessment tax returns. On the face of it they seem to be pretty accurate except that he hasn't claimed any capital allowances on fixtures and fittings and goodwill ( he bought a franchised fast food outlet in 2009) and the amounts are substantial (£120,000)
Can he claim these in this tax return (2011 which is late) or does he need to resubmit previous returns? Or are they lost altogether?
Thank you in advance..
Related resources
Replies (3)
Please login or register to join the discussion.
Not retrospectively
You cannot claim CA's retrospectively. If within time limits you can amend a return to include CA's not previously claimed, but as CA's can only be claimed in a return you cannot make any form of retrospective claim.
However, from the CA's point of view you still have the full value of the asset brought forward on which you can now claim WDA's. Not ideal but at least no all is lost.
Not retrospectively
Alan is right that you cannot re-submit a previous return, but you can claim for any capital allowances not previously claimed in an open tax return. If he owns the building, then he can claim for the integral features as well as qualifying plant and equipment.
If you require any further specialist CA advice then please drop me a line.
Return can be adjusted within two years
The normal tax enquiry window applies to these.
If your dealing with a 05/04/2011 return the filing date would have been 31/01/2012 (assuming online return - 31/10/11 for paper). However this can still be amended, or withdrawn and new return lodged in its place up until 31/01/2013.
Have a look at this>>>>
http://www.hmrc.gov.uk/sa/correct-repay.htm
Given that Annual Investment Allowances (100% in year claimed) were capped at £100k for the 2011 tax year (as well as up to April 2012) getting the claim properly reviewed could greatly accelerate the tax savings available to your client - by claiming any Integral Features or Plant and Machinery upto the cap in the first year.
Please do get in touch if you require further details or assistance to ensure your client optimising their property tax savings from the available capital allowances.
Regards