PTP's Tax Tip No.1 ' Retrospective claims for first year allowances

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Q: My partnership bought new computers and peripherals in May 2003. We were not able to claim 100% first year allowances on this expenditure since our annual turnover is around 4 million, our assets 2 million and we have 30 employees, whereas at that date the limits for a small enterprise were 2.8 million, 1.4 million and 50 respectively ' we didn't satisfy two out of the three tests. Now the limits have changed but too late to give us the FYA.

A: Not necessarily! Suppose your year end is 28 February. The regulations to change the small companies limits took effect on 30 January 2004 with effect for accounting periods ending on or after that date. They therefore affect your accounting period to 28 February 2004 and, since the limits are now 5.6 million, 2.8 million and 50 employees, your fi...

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