FOUR ELMS BOOKKEEPING

Bookkeeper serving Yeovil, Sherborne, Langport, Wincanton, Somerton and surrounding areas of South Somerset and West Dorset.


Summary of Capital Allowances available in force from 1st January 2013 to April 2014


The following capital expenditure may be deducted from income in calculating taxable profits:

The Annual Investment Allowance (AIA) has changed since the last tax year. A hybrid AIA will apply for accounting years which span periods with different AIA.

The above rates apply to companies or sole traders whose accounting year chargeable to tax ends on or after 1 January 2013. They also apply to companies whose accounting year started before 1st April 2014 and sole traders with accounting years commencing before 6th April 2014. The changeover date for the AIA was 6th April 2014 for sole traders and partners paying Income Tax, and 1st April 2014 for Corporation Tax.

The hybrid maximum allowance is calculated by working out the proportion of the accounting year falling within the earlier tax or calendar year, and the remaining proportion falling in the later tax or calendar year, then working out the weighted average of the two maximum annual investment allowances: 25,000 was the AIA for the nine month period April to December 2012 while a higher rate of 250,000 applies to the 15 month period from 1st January 2013 to April 2014. From April 2014 until 31st December 2015 the AIA was 500,000. The changeover date for the 2014 rate was 6th April 2014 for sole traders and partners paying Income Tax, and 1st April 2014 for Corporation Tax.

For help with self-assessment tax contact Four Elms Bookkeeping.

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