Capital Allowances

mitch1875

I have started up a new business on the 1st Jan 08 and purchased a van for use in my business. I understand i can get 50% first year allowances for this purchase. Am i restricted to only claiming back 3/12ths of this amount back from my 07-08 tax return or do i get all of the 50% back?

Elaine_Wilson

You can claim the full 50% if you want to. It is the annual writing dfown allowances which must be apportioned according to the length of the accounting period.

Note that you do not have to claim the full FYA. You can claim any amount up to the maximum 50%. If you do claim a reduced amount the balance just goes into the carry forward pool and qualifies for WDA in the following year. You cannot claim the balance of the FYA next time.