I have a scaffolding client who has spent £50,000 on scaffolding. Their previous accountant put this to the P&L which created an £11,000 loss. I believe that the scaffolding should be an asset which therefore means they have a profit of £39,000. My question is, does this mean that the AIA I can claim for them is restricted to the £39,000, therefore meaning they have £0 profit for tax purposes or can I claim the full £50,000, thus carrying forward an £11,000 loss to the following year?
Thanks for the help in advance