Capital Allowances

millyvanilli

i hope this question is not inappropriate and i am not looking for tax advise but is it possible to just use enough of your capital allowances so as to leave an income that is covered by personal tax credit and pay the 3% prsi ..many thanks
MV

Legend100

as far as I can remember, capital allowances cannot be brought forward if there is income to be offset in the current year. As you are hoping to leave a taxabale income of your credit grossed up, this would mean you are not using all your capital allowances in the current year. Is this correct?

If this is the case, then i dont think it is allowed

Mr. Incognito

What kind of capital allowances?

Industial buildings say can be offset against any income and usually is 4% over 25 years of the allowable cost.

If they are ordinary capital allowances on plant or machinery or the like it is 12.5% over 8 years. You have to take the full deduction in that year of the appropriate portion or it is lost.

millyvanilli

yes on p & m and quip etc ..thanks a million thats what I thought ..had forgotten since my exams .thanks again mv