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Capital assets expensed

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See Also

Adjustment of profit | Capital items expensed analysis | Expense analysis | Fixed assets | UK property business analysis


Select from the following headings:

Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors


Background

This schedule allows the user to analyse capital assets expensed, where the accounting and tax treatments differ. Once they have been identified as capital items for tax purposes, they are then posted automatically to the appropriate capital allowance schedule.

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Developing the schedule

This schedule may be developed from the Develop menu on the C schedule, or alternatively from the Develop menu on an Expense analysis. It is also available as the item Link Capital items expensed from either an Expense analysis or a UK property business analysis schedule.

One copy only of the schedule may be developed. A new row is inserted on the schedule for each subsequent selection of an item linked through the menu category Link Capital items expensed.

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Completing the schedule

When the schedule is developed it will contain headings for all the capital allowance categories already developed from the C schedule. These should be used, together with the non-qualifying and revenue headings, to analyse the amounts linked into the schedule from the expense analyses. Capital items that have different accounting and tax treatments are linked into the schedule using Link Capital items expensed on the Develop menu of any expense analyses (including the UK property business analysis). When linked the system will insert a new row on the schedule and the user will be prompted by an error on the schedule to analyse the expense over the available headings at the top of the schedule.

UK Property business

Capital items that have been linked in from the UK Property business appear separately at the bottom of the schedule. These amounts will be added back to the profits of the UK property business in the relevant A schedule.

It is necessary to separately analyse these items between qualifying, non-qualifying and revenue items at the bottom of the schedule. If this is not done errors will appear throughout the schedule.

The software will make the appropriate adjustment on the A schedule and post the totals of each column on the expense analysis to the appropriate capital allowance schedule.

Although the user may insert rows and put manual links on the schedule to expense analyses, this is not the recommended way to use the schedule.

Investment companies

The investment company version is similar to the trading company version.

Long periods of account

For long periods of account two additional analysis rows are provided, one relating to each accounting period.

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Standard sub-schedules

The schedule has one standard sub-schedule, the Capital items expensed analysis, which may be used to give additional accounting information about the items expensed.

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Carry forward

On carry forward, this schedule is automatically developed in the subsequent computation if it is present in the prior year computation.

 

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Related errors

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