I have a client that does not need to use the full capital allowance available, can I just use the amount that brings the profit down enough to not pay tax? rather than using 18% of WDV plus additions?
Sorry for all the questions, this is by far the most complicated return I have done yet (and it's scares me a bit!)
Also sorry to the lady that answered my similar question earlier about not having to use the full amount of AIA - I think it was Joanne
You do not need to use the full amount of capital allowances available in the year.
That doesn't carry forwards the missed amount but rather the WDV on which future year calculations are based is higher.
Its often good tax planning to make full use of peoples personal allowances where such would have been lost had the full amount of capital allowances available been claimed.
HTH,
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.
You lied to us in that title... How could you lie to us... lol.
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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.
