How to put Capital Allowances values in SA105 tax return

With the paper submission deadlines approaching for submitting tax returns manually, I thought I’d demonstrate an example of which Capital Allowances numbers need to go where on the property pages of a tax return.

The scenario below shows a tax payer owning 3 properties.

The first is a qualifying Holiday let property, within the EEA, which makes a profit. After we have undertaken a compliance check, site survey and asset valuation, Capital Allowances of £9,500 (BOX 12) are claimed for this property against the properties profits only. This reduces the profit from £11,400, to £1,900. Therefore saving tax which would be payable by the owner.

The second property is bought in the current tax year, and is therefore eligible for AIA. After we have undertaken a compliance check, site survey and asset valuation, the property attracts Capital Allowances of £12,500 in total. These are all claimed on the return (BOX 32). No further allowances will be available for that property.

The third property has been owned for some time, and is therefore eligible for WDA. After we have undertaken a compliance check, site survey and asset valuation some years earlier, the property attracts Capital Allowances of £200,000 in total. The WDA for this tax year equates to £18,400. These are all claimed on the return (BOX 34). The balance of the pools of allowances is available for future years at the prevailing Writing Down rate.

The client has other income, and decides to use the loss in the year, appropriated by Capital Allowances of £24,100 (Not the Capital Allowances total of £30,900) to be used against their other general income. This is only possible by inserting this figure in the return (BOX42).

Hope this helps!

 

capital allowances on tax return

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