Capital Item Question.

porkpiecalc

I have a quick tax question.

I cannot remember how to calculate what you bring forward for a Capital Item.

For example, if a Capital Item costs £1000 and in the first year you are able to claim 40%. Does that mean you bring £600 forward to the next year and claim 25% of the £600 in the next year?

I always get mixed up on this.

Debt_Free_Chick

Yes - you bring forward what was left over from the previous year. And, of course, if you've bought another capital item, you need to add that on too. The jargon is "pool" to describe the value of the items on which you're claiming capital allowances and the amount you're claiming is the "write down allowance or WDA".

Suggest you set up a spreadsheet, then you'll have a running total each year

porkpiecalc

Great. Just needed to check. Thanks