Record capital allowances

The Capital allowances tab is accessed via the the self-employment section for individuals and the trade / profession section for partnerships in Data Input tab within the tax return and provides entry and calculation of capital allowances and balancing charges for a number of asset types.

When accessing the Capital allowances tab you must input valid dates for the accounting period. If an accounting period has not been entered the Capital allowances tab will show a message asking for the dates to be corrected.

Capital allowances grid

The grid displays a summary of the various classes of capital allowance that are applicable for the current period.

The supported asset types are:

  • Plant & machinery – Main pool

  • Plant & machinery – Special rate pool

  • Short life assets

  • Assets with private use

  • Research & Development

  • Know-how pool

  • Patents

  • Freeport structures and buildings allowance (added from 2022)

For each type of asset, the grid shows a summary with each asset type in its own column. To access the input area for an asset type, select Edit at the top of the column for that type.

Below Edit, the following information is summarised for each asset type:

  • WDV B/Fwd – the tax written down value at the start of the accounting period.

  • Additions eligible for FYA – the sum of the expenditure in the period that is eligible for 100% First Year Allowances.

  • FYA @ 100% – the amount of 100% First Year Allowance claimed on the relevant expenditure.

  • Additions eligible for AIA – the total expenditure in the period that is eligible for the Annual Investment Allowance. This may be more than the AIA limit for the year.

  • AIA – the Annual Investment Allowance claimed. The title for this row also shows the maximum amount of AIA that can be claimed in the period, assuming that the AIA limits are not shared with another business.

  • Other additions – the total expenditure in the period that is not eligible for First Year Allowances or Annual Investment Allowance.

  • Less: disposal proceeds – the value of all asset disposals in the accounting period.

  • Balancing (allowance) / charge – any balancing allowance or balancing charge that is applicable for the asset type.

  • Residue – the residue of expenditure after adding the written down value and additions, and after deducting FYA and AIA claimed and disposal proceeds. This is the amount on which writing down allowances can be claimed.

  • Small pools WDA – for asset pools this line will indicate the writing down of the remaining pool balance where the balance of the pool is less than the small pools limit for the period.

  • WDA – the maximum writing down allowance that can be claimed in the period. The rates for writing down allowance will be different for different types of asset.

  • WDA not claimed – the total writing down allowance not actually claimed for the asset. This figure will reduce the WDA claim and increase the written down value carried forward.

  • Transfer in / (out) – for plant and machinery pools, the value of any assets transferred into or out of the pool at the end of the period.

  • WDV C/Fwd – the written down value of the assets to be carried forward to the next accounting period.

  • Private use – the total of any private use element that is to be deducted when arriving at the overall capital allowance claim.

  • Allowances claimed – the sum of all allowances claimed for each type of asset; this includes First Year Allowance, Annual Investment Allowance, Balancing allowances/(charges) and WDA claimed. Any private use element has also been deducted from this total.