Caiptal Allowances

[Kimbombim]

Just wondering that the capital allowance rate is for April 2009 - March 2010?

Previously thought it was 50% FYA and the 25% each year after that.

Thanks

 

[Veritas Accountants]

For 09/10 the first £50,000 of expenditure qualifies for 100% relief through the Annual investment allowance (AIA). Any expenditure over this limit gets 40% relief.

The writing down allowance for plant and machinery is 20%.

Any expenditure on Energy saving and environmentally beneficial equipment gets a 100% allowance.

You should spend time ensuring you get the correct relief for any expenditure incurred.

 

[Kimbombim]

I do a set of accounts for a self emplyed builder and when i first started them the fya was 40% and the 20% each year after that so obv ive got balances on his vehicles and machinery etc so does this new 100% thing only apply to additions this year and do i carry on writing down the assets ive got from previous years as normal?

Thanks

 

[Veritas Accountants]

The 100% only applies to the first £50k of additions for 09/10 year. The balance of plant and machinery brought forward is then written down by 20%

Cheers

 

[Kimbombim]

Right lovely so i carry on as before with the old and then with the additions i can claim 100% can i - its basically £470 ish on tools and £700 ish on a new computer?

Thanks

 

[Veritas Accountants]

Yep 100% on the additions

Cheers

 

[Davidad]

I think I have missed a trick here, although it may not be too late. Our plc was set up in March '10 and we have bought a van and numerous tools for the business. What is the cut off cost for capital ? I am currently capitalising anything above £200.

Secondly what does eg "50% allowance" mean ? Can you claim for 50% of the cost back ?

And finally, when do you make a claim - end of tax year or business year ?


Thanks in advance

 

[mr. mischief]

Make it a bit easier anc capitalise anything over £500.