AIA - Acquisition & Disposal in Same Tax Year

staffsuk

Hi all!

Just a quick question re: AIA, if someone could assist?

I'm a sole trader, not VAT registered. I purchased a computer in the tax year 20-21 for £1000. I apportioned 60% for business use, 40% private use. I therefore claimed £600 AIA in my 20-21 tax return.

In the last tax year 24-25, I sold the above computer for £350, and purchased a new computer for £750, again with the same usage split. From that I calculated:

Used computer net sale proceeds = £350
60% business use = £210

New computer cost = £750
60% business use = £450

My question is do I need to include both the AIA allowance of £450 for the new computer, as well as a balancing charge of £210 in my tax return?

Or do I just deduct the balancing charge from the new AIA figure (£450 less £210 = £240), and insert that figure alone as the AIA claim in my 24-25 return?

Thanks!

Jeremy535897

I would insert the net figure. You add the £450 to the pool, deduct the sale proceeds of £210, and claim AIA on the £240.

staffsuk

I guess either way, it would out to be the same, resulting in an AIA claim of £240?

Many thanks!