I have a sole trader who commenced trading in Dec 09. He has introduced office equipment of £700 to the business. I know that I cannot claim AIA but can claim WDA's.
Since it is below £1000 can I claim the whole £700 or do I have to wait for next year when it will be a balance carried forward and just claim the 20% this time (20% * £700* 4/12).
Thanks
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Replies (3)
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Claim away - possibly!!
The £1,000 test applies at the point at which you would normally claim WDA and allows a WDA claim of 100% if the balance on the pool (after deducting disposal proceeds) is less than the limit. So in principle you are in play.
Watch out though, the limit of £1,000 applies only if the accounting period is 12 months in length, otherwise you reduce pro rata (or scale up for long periods). So if your accounts are to 31 March, you're unlikley to be able to claim on £700 as your limit will be less than £500. Have a look at either FA 2008 s 81(3) or CAA 2001 new S56A(3)(a).
AIA not allowed
I was under the impression that AIA cannot be claimed for Capital Introduced?