Capital Allowances

To access this screen,  select Edit | Capital Allowances

This option is used to record assets which are eligible for capital allowances and to calculate those allowances for each trade.

The Capital Allowances option interacts with IRIS Fixed Asset Register (FAR) to pick up details of assets already entered in that product.

The easiest way to approach the Capital Allowances facility is to use the options in the order they are shown on the menu.

Multiple Trades

• Where a business has multiple trades, each individual asset must be allocated to a specific trade. Select the trade by selecting the Trade name drop-down in option A - Maintain Assets.

To access E - Maintain Pool, select the trade in the Trade Selection screen. The Multiple Trades - Maintain Asset Pools data screen will display for the specified trade.

A - Maintain Assets

Enter any assets to appear individually on the computation leaving the pool field unticked.

• Assets with private use and expensive motor vehicles must be entered here.
• Also enter short life assets here.
• You may, if you choose, also enter pooled assets in here to keep an individual record of the pooled assets. Alternatively a total of additions and disposals may be entered in E - Maintain Pool.

B - Re-calculate

Run this option after assets have been entered in Maintain asset details to calculate the capital allowance available for the period for non-pooled assets.

The calculation is based upon the closing WDV of the previous period, provided this period is registered on Business Tax. If the period is not registered Business Tax uses the details entered in Maintain Asset Details to calculate the opening WDV.

If this option is run again once amendments for private use etc. have been made in Maintain individual assets these amendments will be removed and must be re-entered. However, this option must be run again if any amendments are made to non pooled assets in Maintain Asset Details.

C - Maintain

Allows amendments to the allowances taken on assets which are to appear individually on the computation. i.e. to reduce the amount of capital allowance claimed for the asset.

The screen also allows the user to enter the amount allowable for private use etc.  

D - Re-calculate

Calculates the allowances on the pool brought forward.

New pooled assets entered in option A will be added to the pool and appear in the additions field in Maintain asset pools.

If this is the first year Business Tax has been used you will be prompted to enter the WDV B/F at the start of the accounting period.  

E - Maintain Pool

Allows the user to:

• enter additions and disposals to the pool which have not been entered in option A
• amend the allowances claimed

Once you have completed this screen do not run option D again as this recalculates and will remove your amendments.

Once users are in the maintain asset pools screen they are then able to adjust the WDV brought forward figure by using the override option available in there. This can be accessed through each accounting period.

F - Change AIA Limit

Under certain circumstance a business may be required to restrict the Annual Investment Allowance that it can claim.  

These circumstances are laid out in s51 Sch 24 of the Finance Act 2008 and include:

• Groups of companies
• Groups of companies under common control
• Other companies under common control
• Qualifying activities under common control

Where the restriction applies to a business the user may enter the restricted allowance in this field.

If the allowance is to be restricted only because of the length of the accounting period the restriction will be calculated automatically by the program, no entry in this field is required.