Capital Allowance Computations for Plant and Machinery (1) Flashcards
1
Q
How are capital allowances deducted?
A
From the adjusted trading profit of that accounting period
2
Q
The three types of capital allowances available?
A
Annual Investment Allowance
Writing Down Allowance
First Year Allowance
3
Q
Current AIA investment limit?
A
£1,000,000
4
Q
AIA allowance within a 12 month period?
A
100% for first £1,000,000 on allowance for plant and machinery
5
Q
What happens to an expenditure greater than 12 months?
A
Qualifies for writing down allowance
6
Q
What does AIA not allow?
A
Cars
7
Q
AIA for a three month period?
A
£1,000,000 * (3/12)
