Chapter 10 - CAs - FYA & AIA

Question 1

First Year Allowance

Answer 1

Enhanced rate of 100% CAs on qualifying P&M. It has it’s own pool.

Question 2

FYA Qualifying Expenditure

Answer 2

• Energy saving P&M (boiler, heating, ventilation, air con, hand dryers, motors and drivers etc)
• Environmentally beneficial P&M which meets water saving or efficiency criteria (meters, monitoring equip, flow controllers, leakage detection, toilets and taps)
• Cars which are electric or have CO2 emissions beflow 50g/km
• Zero emissions goods vehicles

Question 3

Annual Investment Allowance

Answer 3

Available to all businesses. 100% allowance for the first £200,000 spent on P&M. If the AP is more or less than 12 months, it is apportioned. Any unused AIA is lost

Question 4

AIA Restrictions

Answer 4

If a sole trader has more than one trade that are related, there is only one AIA available between both trades. Trades are related if the businesses are carried on from the same place or if they represent similar trading activities. 
No AIA (or FYA) available on P&M acquired from a connected person