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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13863
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Hi There, I am in the process of filling out my CT600 for

Resolved Question:

Hi There,
I am in the process of filling out my CT600 for my second year. Last year I claimed AIA on 100% of an asset. Does this asset then become completely an expense as I have claimed CT relief through AIA and therefore does not show up on the Balance sheet as an asset for this year or does it remain on the balance sheet at its full value until it is disposed of and then adjustments made?
Thanks,
Dave
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question, I am Sam and I am one of the UK tax experts here on Just Answer.
It remains on the balance sheet as you still hold this asset. But you just do not claim and further capital allowances on its purchase as you have had the full value in the tax year of purchase.
So it does not become an expense.
Thanks
Sam
Customer: replied 2 years ago.

Hi Sam,

Thanks for the clarity on that. I assume then that it only comes off the balance sheet for tax purposes when the asset is disposed of.

Thanks,

Dave

Expert:  Sam replied 2 years ago.
Hi Dave
That's right and then at that time you only have to make any further adjustment is the asset is sold for more than you originally claimed ( which does happen occasionally when an item is sold on!)
Thanks
Sam
Customer: replied 2 years ago.

Thanks Sam,

That makes sense. Thanks for your help.

Dave

Expert:  Sam replied 2 years ago.
Hi Dave
You are very welcome, if I could trouble you to rate/accept the level of service I have provided, this will ensure I am credited for my time.
Thanks
Sam
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