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Fixed assets
Select from the following headings:
Background | Developing the
schedule | Completing the Schedule | Standard
Sub-Schedules | Carry Forward | Related
Errors
The General allowances schedule supports both reducing balance and straight line allowances. It allows you to customise
the rate of straight line writing down allowances granted in respect of expenditure
on particular assets (for example, allowances on patent expenditure incurred
prior to 1 April 1986 where the expenditure is written off over 17 years), or the writing down rate.
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For FY2002 and later, copies of the General Allowances schedule can
be developed form the C schedule (fixed assets),
and from the rental income schedule.
Multiple trade companies can develop copies from the C
schedule (fixed assets) for all periods from 1991 and from the rental income schedule.
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Along with the information relating to costs, tax written down values brought
forward, and additions and disposals in the year, it is also necessary to
provide details of how the expenditure will be written
off (described below). The writing down details need to be re-confirmed in subsequent computations.
Writing-down period (years)
This cell should be completed where assets are being written off on a straight line
basis over a number of years, for example patent expenditure pre 1 April 1986.
% Rate
The schedule will calculate allowances on a reducing balance basis if a
percentage figure is entered here. In long periods the rate entered will be used in both the main and second period calculations; the schedule should not be used where a different rate is required in the second period
If both a Writing-down period (years) and a % Rate are entered the software will issue an error.
Annual Allowance
This allows the user to specify the amount of the allowance to be given annually.
FYAs Y/N/D /Rate for FYAs
For periods where FYAs are relevant, the user should use the Y/N/D flag to indicate whether additions qualify for FYAs. FYAs can be partially disclaimed by adjusting the FYA percentage rate or fully disclaimed by setting the FYA flag to D.
Additions
Where additions have been charged to the Profit and Loss account, the amount expensed
can be entered in the field provided at the foot of the Additions column to
reconcile the additions to the analysis of fixed asset movements (see C
schedule (fixed assets).
Where allowances are to be taken as a trading deduction, a selector
towards the bottom of the schedule allows the user to control the disclosure
on the return form.
General pool
Where the schedule is being used for a general pool all the entries should
be made on a single line. Where expenditure is eligible for FYAs it should be entered on a separate line, and the brought forward TWDV consolidated
into the single line in the following period. Where the property business is
in an investment company the Leased Plant and Machinery on Lease and Leased Long Life
Assets schedules can be developed from the C
schedule (fixed assets) (under Other allowances). These schedules will correctly
calculate the allowances for the property business.
Writing down allowances (WDA) waived
By default any writing down allowances (WDAs) waived are apportioned across assets automatically.
Industrial/Agricultural buildings allowance
From 2008 onwards, the General Allowance schedule no longer supports the tracking or calculation of industrial building/agricultural building allowances. The user should instead develop the standard industrial and agricultural buildings schedules which have been specifically updated to deal with the change in legislation and the phasing out of IBA/ABA.
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The schedule has no standard sub-schedules.
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The schedule(s) will be carried forward to the following period. The captions,
original costs, tax written down values at the end
of the period, and return form disclosures are carried forward automatically.
Rows where allowances are withdrawn or where disposal proceeds have been entered will not carry forwards.
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Error | How to
solve it |
| Allowances
waived should be positive | This error results from the sign conventions used within the software.
Writing down allowances (WDAs) 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. |
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© 2009 Thomson Reuters.