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Long life/Special rate assets (including integral assets) |
See Also
Select from the following headings:
Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors
This schedule calculates capital allowances on long life assets or special rate assets (see below) based on additions and disposals on the Fixed assets and Fixed asset disposal schedules. The additions should be categorised as qualifying for First Year Allowances (FYAs) or Writing Down Allowances (WDAs) where relevant. For long periods of account, the movement is duplicated for the stub period; for short and long periods of account WDAs are apportioned according to the length of the accounting period as appropriate.
Following the changes in FA 2008, this schedule calculates allowances and charges on special rate assets, including integral assets, and on both long life and special rate assets in any transitional period straddling 1 April 2008.
Cars acquired after 31 March 2009 that fall into the relevant CO2 emissions category should be added as appropriate depending on their CO2 emissions.
One copy only of this schedule may be developed from the Fixed asset schedule for each relevant business usage type, e.g. Trade, UK property business or Expenses of Management.
The majority of the cells will be completed automatically from the schedules, which cross-reference through. The following areas of the screen may require some user input entries:
Periods straddling 1 April 2008
To ensure that the correct rate of tax is applied, it will be necessary to analyse additions, disposals, etc between those arising pre and post 1 April 2008. Where this analysis is required, you will be prompted by an error.
The calculation of WDA is shown in full towards the foot of the schedule, showing the amounts charged and the rates applied.
Tax written down value, beginning of period
The user is required to enter the tax written down value brought forward, where this has not been automatically entered by the File, Build new period function.
Waiving of WDAs
WDAs may be waived by entering the figure for the waiver in the cell labelled "Less capital allowances not claimed" towards the foot of the schedule.
Leasing of plant - CAA 2001 s220
Any expenditure restricted under CAA 2001 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.
?Hybrid? rates of WDA
The software automatically calculates the relevant rate and displays this.
A data entry cell is provided to allow for the rate to be overridden if required, and for clarity the rate of WDA applied is displayed and printed in final.
Write off of ?small pools?
Where relevant provisions under CAA 2001 - s56A apply, enter the amount of allowances claimed in the data entry cell provided. This removes the WDA calculation analysis section, and amends the description in the main computation section.
The maximum write off for an individual pool is displayed as a review point for guidance. Note that the software does not carry out any validation based on this figure.
Cessation of Trade
Under the provisions of CAA2001 s56 (7), a balancing allowance arises on the pool on cessation of the qualifying activity.
If a company has ceased to perform the qualifying activity, and items still remain in the capital allowances pool, then the selector at the bottom of the B Schedule labelled Cessation should be changed to ?YES? (the default position is ?NO?).
Changing the selector to ?YES? will force the calculation of a balancing allowance/charge which is then taken through to the relevant profit adjustment schedule.
Changing the selector to ?YES? will also prompt a disclosure sentence which will automatically be displayed on the face of the schedule.
The schedule has no standard sub-schedules.
On carry forward, the tax written down value of the pool brought forward for the later period is linked automatically to the value carried forward.
Error | How to
solve it |
| Check WDA disclaimer | This error occurs when the writing down allowances (WDA) not claimed are in excess of the amount of WDAs actually available. Ensure that the WDAs not claimed are not in excess of the actual WDAs. |
| Check analysis | This can only occur during a period straddling 1 April 2008, and indicates that a value entered or calculated needs to be analysed into amounts relating to ?Pre? and ?Post? 1 April 2008. Analyse the figure where the error has arisen using the data entry cells provided. |
| Disclaimer is negative | This error occurs when capital allowances are not being claimed. The capital allowances not claimed figure needs to be entered as a negative number. Re-enter the amount to be written off as a positive. |
| ?for this period do not need analysing | This can only occur when the period end falls into FY2008, but the relevant taxable period does NOT straddle 1 April 2008, and indicates that a value entered or calculated has been analysed into ?Pre? and ?Post? 1 April 2008. Remove the analysis figures entered in the relevant data entry cells. |
| Enter +ve amount | This error occurs when the full tax WDV is being written off as a "small pool" under CAA 2001, s56A. The amount to be written off needs to be entered as a positive number. Re-enter the amount of WDA not claimed as negative. |
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