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 April 2014 to 31st December 2015


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 whose accounting year chargeable to tax ends after 1st April 2014 and to sole traders whose accounting years end after 6th April 2014. They also apply to companies and sole traders whose accounting year started on or before 31st December 2015. 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: 250,000 was the AIA applicable 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. After 1st January 2016 the AIA fell to 200,000

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

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