just want to double check that I understood the AIA correctly.
I'm helping a client with his 2010-2011 SA Tax Return and I'm dealing with tools that he uses in his self-employment (started on 6th April 2010). He purchased new tools worth £3,500 during the year, but he also owned tools worth £900 which he brought into the business as capital when he started up.
Am I correct that the AIA only applies to the £3,500 and he can claim only the 20% WDA for the £900 since the latter tools were not purchased within the business and were used for personal reasons before?
Thanks.
Fabs
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Normally I would say the way you have worked it out is correct, however as the amount of latter tools are under £1000 you can claim the full amount. Its called the small pools allowance
