Short life assets - supporting schedule

Background

The purpose of this schedule is to allow the user to identify separately assets which are to be treated as short life assets. This schedule does not allow the user to identify fungible assets. It would usually be used where there are large numbers (2000<) assets are to be separately identified.

5 To the top

Developing the schedule

The short life asset - supporting schedule is developed from the Multiple short life assets schedule with any writing down allowances being carried through to this.

5 To the top

Completing the schedule

Some of the entry cells are described in more detail below:

Acquisition period end / Description

The user should amend the Acquisition period end to the end of the accounting period in question. This will enable the system to identify how long the asset has been in use for and make any necessary transfers at the end of 5 years. The system defaults to a December period end and can be amended where necessary.

Each asset should be identified on a separate row and a description can be added to differentiate between each asset type.

FYAs Y/N/D / Rate for FYAs

For periods where FYAs are relevant, the user should use the Y/N/D indicator as to whether additions qualify for FYAs. FYAs may be disclaimed by adjusting the FYA percentage rate or can be fully disclaimed by setting the FYA flag to D. WDAs may also be disclaimed in full by setting the indicator flag in the FYA column to D. Some guidance is given to this effect at the foot of the schedule.

The rate of FYAs can be amended by entering the appropriate percentage expressed as a decimal.

SLA period (years)

This shows the number of years the asset remains de-pooled before being transferred back to the general pool. Where the accounting period ends after 1 April 2011, the de-pooling period can be selected for each asset relevant to the date it was acquired.

Transfer to general pool

When the short life asset period ends for each asset, the brought forward tax written down value of the asset is automatically transferred to the Plant pool schedule.

Additions/(Proceeds)

Additions and disposals are dealt with in the same manner as other assets qualifying for capital allowances. Balancing adjustments where assets are disposed of are carried forward to the A schedule automatically.

CA2001 s220

Any expenditure restricted under CA2001 s220, which is available for carry forward and inclusion within the next accounting period under s220 , will be shown as a memorandum entry towards the foot of the schedule.

Writing down allowances (WDA) waived

By default any writing down allowances (WDA) waived are apportioned across assets automatically. For FY 2005 files and onwards it is possible to manually allocate WDA waived across individual assets by means of a selector on the schedule. Data entry cells will be displayed for this purpose.

'Hybrid' rates of WDA

Where the rate of WDA changes between financial years and a 'hybrid rate' is required to be applied, the software calculates the relevant rate and displays this. Note that this will not display or print in the final version.

A data entry cell is provided to allow for the rate to be overriden if required, and for clarity the rate of WDA applied is also displayed.

5 To the top

Standard sub-schedules

This schedule has no standard sub-schedules.

5 To the top

Carry forward

The system carries forward all identified SLAs when a new period is built. This continues until the earliest of disposal or the end of the SLA period after the accounting period during which the asset was acquired (when the de-pooling election ceases to have effect).

Once the de-pooling election ceases to have an effect, the tax written down value at this date is transferred into the Plant pool.

5 To the top

Related errors

Error	How to solve it
Sign error	This error results from the sign conventions used within the software. This error can be resolved by clicking the button.
Excess waiver	This error occurs when the writing down allowances (WDA) disclaimed are in excess of the amount of WDAs actually available. Ensure that the WDAs disclaimed are not in excess of the actual WDAs.
Allowances waived should be positive	This error results from the sign conventions used within the software. Writing down allowances (WDA) are deducted from the profit before tax to arrive at profits chargeable to corporation tax. If the allowances waived are entered as a negative number, this actually increases the WDAs claimed in this accounting period instead of deferring them until future accounting periods. This error can be resolved by clicking the button.
Remove manually entered values above or select to manually allocate WDA waived	For FY 2005 files and onwards where the user has selected not to manually allocate writing down allowances (WDA) waived but has made manual entries these entries are not relevant and should be removed.

5 To the top

How to use the Knowledgebase