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Post Info TOPIC: Annual Investment Allowance Question


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Annual Investment Allowance Question
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Hi,

I am correct in thinking that if a van is purchased in the 1st year of business (2nd hand, £2k) then the full 100% of the van can be claimed as AIA?

Thanks in advance



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Just to confirm, this is a new business rather than the incorporation of an existing business within which the van already exists.

If as it sounds this is the straight purchase of a second hand Van from non related parties in an arms length transaction then there is no reason that you should not use the AIA if you need to although as it is your first year be careful that you are not throwing away capital allowances that could be carried forwards against future profits.

Also remember that the AIA is pro ratered rather than being a set figure regardless of the time period. Although, for £2000 I don't imagine that there would be an issue unless you have major expenditure elsewhere.

kind regards,

Shaun.

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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.



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Many thanks for you reply.
Yes it is a new business that was sent up April 2015.
There are no other major expenditures.
Thanks again

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