How do I claim Annual Investment Allowance (AIA)?
The software has a dedicated screen to enable you to claim AIA up to the maximum amount of AIA allowable for the period in question.
The AI A screen can be found here, and will be displayed for each Accounting Period:
- Tax planning> AIA claim (AP end date).
- The upper section of the screen "AIA Available" displays the maximum amount of AIA available for the Accounting Period.
- This cannot be edited as it is governed by legislation.
- You are able to insert "Amounts claimed by other group companies" which will reduce the maximum available.
Please note, the 'Maximum AIA available for this AP' does not represent the grand total of the 'Max available' column.
The rules for calculating the 'Max available' for each period are based on apportioning the relevant maximum available amounts pre and post the straddling dates and the formulae for these periods are not the same.
Please note the calculation of the maximum available can be by reference to the number of days or months in the AccountIng Period. The calculation that produces the most beneficial result is the one applied.
However, the monthly basis cannot be used if the Accounting Period does not start on either the first day of the month or if the Accounting Period does not end on the last day of a month.
- The lower sections of the screen "AIA Allocation" allow you to specify the amount of AIA you wish to claim.
- This can be allocated by pool type and/o r
- b By trade or management expenses
- There will be a number of 'AIA allocation' sections depending on whether your Accounting Period spans any of the relevant dates where there is a change in the maximum amount of AIA available.
- There are built-in validation messages which will inform you if you have exceeded the maximum amounts available.