This section explains how to create a short life asset in a single accounting period scenario. Click on the hyperlink for Help on creating a short life asset for multiple accounting periods.
To create a short life asset:
- Click into the blank description box in the Summary window.The following window will appear:
- Enter a Description - the description must be unique. It is not possible to have two assets with the same description.
- Enter a Date of acquisition - the date of acquisition is mandatory and must be a valid date within the current accounting period.
An existing asset where the date of acquisition is prior to the current accountnig period can only be added if the period of account is the first period created using CCH Corporation Tax.
- Enter a Date of disposal if the asset was disosed during the current period.
- Enter an amount of the Additions in period.
- Enter an amount for the Tax written down value brought forward - a manual entry can only be made for an existing asset where this is the first period created using CCH Corporation Tax. This box will be automatically completed where the asset has been carried forward from a previous period.
In the section on this window entitled AP information enter the following:
- Enter an amount for the Tax written down value brought forward override - this should only be used where the system calculated amount is incorrect or there has been a change which requires a different value to be used for the accounting period.
- The Transfer out - to Main pool date will be automatically calculated based upon the date of acquisition entered.
- Tick the box Over-ride transfer to main pool date to override the system calculated date. The box will become available for manual entry. The TWDV amount will automatically appear in the box to the right hand side of the date field in the accounting period to which that date beliongs.
- The additions in period amount will appear in the Additions qualifying for WDA box. A manual entry cannot be made in this box.
- Enter an amount in Additions qualifying for AIA/WDA to claim Annual Investment allowance on all or some of the expenditure. The amount of the expenditure shown in Addition qualifying for WDA will reduce by the amount entered here.
- Enter an amount in AIA claimed box for the amount of Annual Investment allowance you want to claim. This amount will be displayed in the AIA data entry window within Tax planning area for AIA claimed on all all Short life assets.
- Enter an amount in the Inter-company transfers in - TWDV where the asset has been transferred to another company.
- Enter an amount in Disposal proceeds box representing the disposal value received for the asset. If no value was received for the disposal of the asset tick the box Tick if Nil proceeds?. The software will enter 0 in the box alongside and automatically calculate the Balancing charge or Balancing allowance arising.
- A Balancing charge will be automatically calculated where the disposal value exceeds the tax written down value brought forward or cost.
- The Writing down allowance (WDA) will be automatically calculated
- Enter an amount of WDA disclaimed if not all the maximum allowance is being utilised in the accounting period.
- The amount of WDA claimed will be displayed within the Allowances/(charges) column.
- Enter an amount, where applicable, for Allowance adjustments for inter-company transfers. This amount should be entered as positive and refers to the value of allowances claimed by the successor.
- Enter an amount, where applicable, for Inter-company transfers out. This amount cannot exceed the available tax written down value brought forward.
- A Balancing allowance will be automatically calculated.
- The Tax written down value carried forward is automatically calculated and will be used as the Tax written down value brought forward in the next accounting period.
- Click the Close button to close the window and complete the creation of the asset.
- alternatively, to create multiple asset records quickly simply click on the green plus button at the top of this window.
- There are no limits on the number of assets that may be entered but HMRC SP 1/86 provides practical aspects of SLA rules, including provisions for grouping classes of assets where individual treatment is impossible or impractical.