Depreciation and AIA

[seasoningoflifeUK]

Hello,
I am a little bit confused.
If company buy ie laptop for £1000 and want depreciate this for 4 years, which is £250 as amortisation.
How can I claim Annual Investment Allowance in this case in yearly tax return?
Should I claim only for £250 or £1000?

Best Regards!

 

[Anna Chandley]

You can claim the whole £1,000 as AIA.

Any depreciation charged in the accounts is added back to the profit in the tax computation.

Lets say you have accounting profits of £10,000 after deducting £250 for depreciation

Accounting profit £10,000
Addback depreciation £250
Deduct AIA (£1000)
Taxable profit £9,250

 

[cheaper accountant]

Also consider any private use of the laptop as this could impact the AIA claim. If 100% business asset and business use then go for 100% AIA.

 

[NicoJ]

Also consider any private use of the laptop as this could impact the AIA claim. If 100% business asset and business use then go for 100% AIA.

The OP states company so private use wouldn't affect capital allowances.

 

[cheaper accountant]

Fair enough. 100% AIA it is!