Delaying WDA

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Hi everyone,

I was just wondering whether it is allowed to delay claiming WDA and whether there was any restrictions on doing so, number of years etc. Say my profits were below the personal allowance, rather than waste an 18% claim this year, receive the 18% on the pool in a future year?

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By Ruddles
05th Jun 2023 17:27

A capital allowances claim is just that - a claim. So, if you don't claim ...

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Replying to Ruddles:
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By Noob
05th Jun 2023 18:12

Thank you. It doesn’t address the issue that often if you don’t claim for something it is lost.. I was 90% sure that not claiming is an option, but could see nothing directly addressing this when searching online. Obviously if you don’t claim AIA then WDA are you only options in the future. Thanks again.

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Replying to Noob:
By Ruddles
05th Jun 2023 19:44

Fair point. The treatment simply follows the legislation. WDAs are based on the residue of qualifying expenditure, the level of which will reflect claims made, or not made, in previous periods. It is not a case of calculating a claim for a period, with the consequent impact on residue, and then not actually deducting the allowance.

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RLI
By lionofludesch
06th Jun 2023 07:36

Jeez, noob- well done for noticing. I've seen accountants in practice get that wrong.

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