Record capital allowances for short life assets

You can record allowances for short life assets in the Trade Profits section, on the Capital allowances tab.

  1. Add the Trading profits section to the return (or select it if already added), then select the Capital allowances tab.

  2. On the Short life assets column, select Edit. Any existing assets are displayed.

  3. Set New asset, complete the details then select Save changes. Repeat for any additional assets.

Short life asset

Enter a description of the asset.

Select if the asset qualifies for Annual Investment Allowance.

Select if the asset qualifies for 100% First Year Allowances.

Select if the asset is on the list of items that are designated as environmentally friendly expenditure.

Enter the date that the asset was purchased.

Enter the cost of the asset, or the market value if the asset was not acquired at arm’s length.

Enter the date the asset was sold.

Enter the sale proceeds. If the transaction was at arm’s length, limit the proceeds to the original acquisition cost.

Calculation

Enter the written down value of the asset at the start of the period. If the tax return was rolled forward from an earlier period then the written down value will have been pre-populated.

Shows the residue remaining after new additions, disposals and balancing allowances/(charges) have been taken into account. If no residue remains then this field will not be shown.

Shows the Writing Down Allowance that has been calculated for this asset. This field will not be shown if the asset has been disposed of.

If you don't want to claim any of the writing down allowances then enter the amount in this field. This field will only be shown if there are writing down allowances.

Show the written down value that will be carried forward to the next period, if any.