One of the things I am doing at the moment is trying to get all of the various capital allowances rules and calculations into an excel format. Nothing to do with life companies but a project to develop a database tool that can work with Sage to provide useful fixed asset and capital allowances information (don't worry I'm only doing the tax there's someone else to do all the whizzy stuff on the database.) The intention is to market to SMEs but if anyone can see any applications for larger companies then very happy to talk.
Going through the exercise its clear there have been a lot of changes and as LifeTax people aren't usually focused on capital allowances it might be useful to jot down what these were.
1. The rates of writing down allowance are reduced from 1 April 2012 to 18% for main pool assets and 8% for special rate pool allowances (long life assets, integral fixtures, high emission cars etc.) For periods straddling 1 April 2012 allowances are time apportioned so for the year to 31 December 2012 the rates are 18.49% main pool and 8.50% special rate pool.
2. The Annual Investment allowance ("AIA") that provides 100% writing down allowances for a certain amount of expenditure has now become very complicated. For periods to 31 March the AIA is at 100,000 per annum. For periods from 1 April to 31 December 2012 AIAs are available on £25,000 per annum and for periods from 1 January 2013 the AIA is £250,000 per annum (per FB 2013) but due to drop to £25,000 from 1 January 2015. Again for periods that straddle 1 April 2012 or 31 December 2012 the allowances need to be prorated. So for accounting periods to 31 December 2012 the AIA is £43,750 (i.e £100,000 x 3/12+ £25,000 x 9/12) or £43,493 if you work out in days. There are also transitional rules for straddling periods that are horrendous and I won't go into here. (I do, however, have a spreadsheet that purports to work it all out).
3. From 1 April 2013 the definition of a high emission car will change from > 160g/KM to > 130g/km.
A couple of links
No comments:
Post a Comment