Am I right in thinking I do not need to claim AIA in the year the item was purchased and it can be carried forward.
I have recently had a HMRC check on one of my clients and I was advised I have claimed AIA in the wrong year as the van was purchased in the 2008 tax year but I didn't claim it until 2009 as it was beneficial to the client. The compliance officer has changed the figures accordingly and is asking for my agreement to the proposal but I dont want to give it!
Confused!
Valerie
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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
My understanding is that you do not have to claim it if it is going to be wasted, but the following year you would be restricted to just usual capital allowances, similar to the way you would treat FYA.
Thanks to both of you, I thought I must be going mad!
I shall now prepare myself to challenge the powers above!
Valerie
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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
AIA is on a use it or lose it basis. You cannot carry AIA backwards or forwards so if you do not claim in the year of purchase then it's gone.
If you don't use the AIA or AIA doesn't fully cover expenditure then as Rob suggests you can use normal applicable capital allowances.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
