A sole trader photographer has a pro forma invoice dated 29/03/22 for £35k worth of camera equipment which was paid for in full 01/04/22. The equipment was received 07/06/22 with a VAT invoice dated 07/06/22.
The terms and conditions with the order and pro forma invoice say - 'title passes on the earlier of payment in full.....' 'risk passes on delivery or collection'.
The trader had to pay in advance of delivery for the order to be placed.
Can capital allowances be claimed in the year ending 05/04/22?
I have posted this query before and have added some details regarding the T & Cs.
I am aware that the general rule is that CAs are available when the is an unconditional obligation to pay.
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Replies (3)
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Thanks for your reply.
Example 3 looks like the closest scenario although my client has paid in full upfront on the basis that this was the only way to proceed with the order.
For what it's worth, posted this on HMRC Community Forum with the following response:
HMRC Admin - As you made payment on 1/4/22, this is the 21/22 tax year and as such, you can make a claim for that year .
Thankyou.
Regards.