s815 election on new IFA

Can my client claim amortisation on some assets and elect under s815 on others?

Didn't find your answer?

We have just been appointed to a new client and their IFA has been written off previously under the amortisation rules. They have now disposed of that IFA and made a new IFA purchase. My tax colleague says they must stick with relief on an amortisation basis but I think they can make a s815 election as it is a new asset. 

Who's right and can anyone give me a legislative aupport?

Thank you

Replies (19)

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RLI
By lionofludesch
24th Nov 2020 18:36

Independent Financial Adviser ?

Institute of Financial Accountants ?

Irish Football Association ?

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By Paul Crowley
24th Nov 2020 18:51

Intangible fixed assets at a guess
But not an abbreviation I would normally use.

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By frankfx
24th Nov 2020 19:11

Who's right and can anyone give me a legislative aupport?

VAR?

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RLI
By lionofludesch
24th Nov 2020 19:30

It'd be nice to know what these IFAs are.

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Replying to lionofludesch:
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By Paul Crowley
24th Nov 2020 19:37

Your first two are what google tells me
A lot more timewasting to get to Intangibles

My staff know better than to invent their own magic letter sequences

R&R
Any ideas

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Replying to Paul Crowley:
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By Tax Dragon
25th Nov 2020 10:09

Paul Crowley wrote:

R&R
Any ideas

Inspired by my upbringing on Blackadder repeats, I actually know this:
it's army and motorbike.

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Replying to Tax Dragon:
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By Paul Crowley
25th Nov 2020 12:58

Took a minute to remember
T - Breakfast

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Replying to Paul Crowley:
Psycho
By Wilson Philips
25th Nov 2020 13:14

A different era, but ...

C - big blue wobbly thing that mermaids live in.

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By Paul Crowley
24th Nov 2020 20:28

I think Anne has gone home
Reply singular tomorrow
Never more than 1 reply

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Psycho
By Wilson Philips
24th Nov 2020 21:10

Read the next section - you’ll find the answer there.

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Replying to Wilson Philips:
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By Tax Dragon
25th Nov 2020 09:56

Maybe say it again, but louder?

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By Annetax
25th Nov 2020 09:02

Hi

Intangible Fixed Asset - sorry for using jargon!

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By Annetax
25th Nov 2020 09:49

Thank you all for your input

The legislation refers to Intangible Fixed Assets CTA2009 Part 8 , with the election being s815.

Perhaps the question could be clarified as:
The client has disposed of an existing asset, which was being amortised (default method). They have acquired a new asset in the same accounting period. Does the client have to continue to use the amortisation method or can they make the s815 election on the new asset?

I'm interpreting it that the election relates to the asset and not the class of assets but my colleague disagrees.

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Replying to Annetax:
Psycho
By Wilson Philips
25th Nov 2020 10:10

I'll say it again - as TD suggested, louder - READ THE NEXT SECTION.

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Replying to Wilson Philips:
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By The Dullard
25th Nov 2020 10:17

What? S 816? Will it help?

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Replying to The Dullard:
Psycho
By Wilson Philips
25th Nov 2020 10:55

Why - do you think that it wouldn't?

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Replying to The Dullard:
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By Tax Dragon
25th Nov 2020 11:56

The Dullard wrote:

What? S 816? Will it help?

Now he's there I can't get Blackadder out of my head.

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Replying to Wilson Philips:
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By Annetax
25th Nov 2020 10:29

Hi

Yes, I get the election. I'm reading it as applying to a specific asset not a group of assets. So in theory the client could have some assets on an amortised basis and claim capital allowances on others.

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Replying to Annetax:
Psycho
By Wilson Philips
25th Nov 2020 12:08

I would go further. Although it would be unusual, my reading of ss815 and 816 is that you could split the expenditure on a single asset between capital allowance treatment and amortisation treatment.

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