Restricting Capital Allowances, amended rtn

Restricting Capital Allowances, amended rtn

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Hi

1. Can you claim restricted AIA in the same you can WDA's in the capital allowance comps? I can't find any refernce to you or can't in two tax manuals etc. Presumably if you can in the subsequent yrs you wld claim WDA on the balance?

2. Also on a new client their business generated taxable profit below Persoanl allowances in 07/08 and therefore paid no tax. Capital allowances cld have been restricted and still no tax. Is it worth filing an amended rtn or is it not possible now as the rtn won't have been filed a 'provisional'?

Regards

Mark

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By User deleted
22nd Jan 2010 15:59

Answers

1 Yes, you can claim whatever AIA you want, up to the lower of the qualifying expenditure and the available allowance. Any expenditure on which AIA is not claimed simply goes into the pool for WDAs in the current and future years. Example - AIA available £50k, qualifying expenditure £40k, allowance required £30k. £10k will be added to pool, and 20% WDA allowance available for current year (WDA can, of course, also be restricted).

2 'Provisional' has nothing to do with it. You have until 31/1/10 to amend the 2008 return - better get your skates on!

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