EIM36915 - Deductions from earnings: capital allowances: example: writing down allowance: restriction of allowance in year employment begins
A maintenance engineer takes up employment in Birmingham on 6 October 2008. On 6 January 2010, after three months training, the engineer buys equipment for use in the performance of the duties of the employment. The equipment cost £6,500 and is used wholly for business purposes.
He elects not to claim Annual Investment Allowance. Writing down allowances may be claimed as follows:
|
|
|
£ |
|
2008/09 |
Cost |
6,500 |
|
|
Writing down allowance (restricted, see EIM36650) |
|
|
|
6/12 x 20% of £6500 = |
650 |
|
|
Residual value carried forward |
5,850 |
|
200//10 |
Writing down allowance |
|
|
|
20% of £5,850 = |
1,170 |
|
|
Residual value carried forward |
4,680 |
Note that the writing down allowance is restricted by reference to the date when the employment began, not the date when the car was bought.
