Clawback of AIA | AccountingWEB

Clawback of AIA

Is there a mechanism to clawback capital allowances when the business use of an asset falls after it has already received 100% AIA?

Imagine that a sole trader purchasesĀ a van purchased on day 1 that is 100% business use and that the full cost is covered by the AIA. In year 2, business use falls to 50% and at the end of year 2, the van is scrapped.

It seems to me that the trader should be entitled to only 75% (average use over the van's life) of the van'sĀ cost, but has already received 100% in year 1.

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Giles Mooney

Paula Sparrow |
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thomas34 |


Paula Sparrow |
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Thank you Paula...

Bluffer |
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