corporation tax online - gov.uk...daily basis the ap straddles the 01/01/2013 rate change. no of ap...
TRANSCRIPT
V3.7 1 Feb-19
Annual Investment Allowance - Appendix C
CT Return Version 3.7
Corporation Tax Online
V3.7 2 Feb-19
Table of Contents
1. Introduction .............................................................................. Page 3
1.1 Purpose ...................................................................... Page 3
1.2 Background ................................................................. Page 3
2. Apportioning Formula for AIA Limit .......................................... Page 4
3. Examples ................................................................................. Page 6
4. Annual Constants ................................................................... Page 12
V3.7 3 Feb-19
1. Introduction
1.1 Purpose
The purpose of this document is to extend the business rules definition
provided by the CT RIM artefacts to include the apportioning of the Annual
Investment Allowance (AIA).
1.2 Background
AIA was introduced in the 2008 Budget and is subject to an annual limit.
Period AIA
1 April 2008 - 31 March 2010 £50,000
1 April 2010 - 31 March 2012 £100,000
1 April 2012 - 31 December 2012 £25,000
1 January 2013 - 31 March 2014 £250,000
1 April 2014 - 31 December 2015 £500,000
1 January 2016 - 31 December 2018 £200,000
1 January 2019 - 31 December 2020 £1,000,000
From 1 January 2021 £200,000
The Annual Investment Capital Allowances boxes -172 plus 173 for APs
starting before 01/04/2015 or 690 plus 735 for APs starting on or after
01/04/2015 - must not exceed the AIA limit.
The AIA limit is apportioned for Accounting Periods (APs) less than 12
months.
The different AIA limits are apportioned where the AP straddles any of the
following:
• 01/04/2008
• 01/04/2010
• 01/04/2012 and/or 01/01/2013
• 01/04/2014
• 01/01/2016
• 01/01/2019
• 01/01/2021
Legislation will be introduced in Finance Bill 2019 to temporarily increase the
AIA limit to £1,000,000 from 1 January 2019 for 2 years.
V3.7 4 Feb-19
2. Apportioning Formula for AIA limit
Apportionment Basis
The relevant AIA legislation (CAA01/S51A[6]) does not specifically require that the maximum AIA should be time-apportioned on a daily basis. In the context of working out a business’s maximum AIA entitlement, therefore, HMRC will accept that it is just and reasonable to make the calculation on either a daily or monthly basis, in cases where the period in question consists of whole calendar months. In other cases, an apportionment made on a daily basis will be required, as this will ensure an appropriate level of consistency and fairness between taxpayers.
The monthly basis of calculation must only be used when the first day of an AP
starts on the first day a month and the end date of the AP falls on the last day of a
month. Where the accounting period does not consist of whole calendar months the
total AIA (Box 172 + Box 173 on CT600 V2) cannot exceed the limit apportioned on
a daily basis. Where the accounting period consists of whole calendar month the
total AIA cannot exceed the limit apportioned on a daily basis, or the limit
apportioned on a monthly basis if that is higher.
Where the AP straddles 01/04/2010, or 01/04/2012 or 01/04/2014, apportion the AIA
limit relevant to each financial year (see examples 1, 5 and 11 below).
Where the AP straddles 01/01/2013 or 01/01/2016, apportion the AIA limit relevant
to each period (see examples 6 to 10 onwards).
Where the AP straddles 01/01/2019, apportion the AIA limit relevant to each period
(see example 12 below).
Where the AP straddles 01/01/2021 transitional rules will apply (see example 13
below).
Note: Examples relating to APs ending before 01/04/2010 have been removed
from this version of the Appendix.
Daily basis
Define the number of Days to apportion the AIA by (D)
If No. of AP days = 366 then D = 366 Else D = 365
Where the AP straddles 01/04/2012, 01/01/2013, 01/01/2016 or 01/01/2021 D = 365
(see example 4 below.)
Calculate the Apportioned AIA rate
Apportioned AIA for FY1 = (AIA / D) x No of AP days in FY1
Apportioned AIA for FY2 = (AIA / D) x No of AP days in FY2
For APs that straddle 01/1/2013, 01/01/2016, 01/01/2019 or 01/01/2021
Apportioned AIA for chargeable period 1 = (AIA / D) x No of AP days in chargeable
period 1
V3.7 5 Feb-19
Apportioned AIA for chargeable period 2 = (AIA / D) x No of AP days in chargeable
period 2, and if applicable
Apportioned AIA for chargeable period 3 = (AIA / D) x No of AP days in chargeable
period 3
Monthly basis
Define the number of Months to apportion the AIA by (M). M = 12
Calculate the Apportioned AIA rate
Apportioned AIA for FY1 = (AIA / M) x No of AP Months in FY1
Apportioned AIA for FY2 = (AIA / M) x No of AP Months in FY2
For APs that span 01/1/2013, 01/01/2016, 01/01/2019 or 01/01/2021:
Apportioned AIA for chargeable period 1 = (AIA / M) x No of AP Months in
chargeable period 1
Apportioned AIA for chargeable period 2 = (AIA /M) x No of AP Months in
chargeable period 2, and if applicable
Apportioned AIA for chargeable period 3 = (AIA / M) x No of AP Months in
chargeable period 3
Rounding
If the AP straddles 01/04/2010, 01/04/2012 or 01/04/2014
Apportioned AIA Limit = (Apportioned AIA for FY1 rounded up to next whole
number) + (Apportioned AIA for FY2 rounded up to next whole number)
If the AP straddles 01/01/2013
Apportioned AIA Limit = (Apportioned AIA for chargeable period ending on
31/03/2012 rounded up to next whole number) + (Apportioned AIA for chargeable
period ending on 31/12/2012 rounded up to next whole number) + (Apportioned AIA
for chargeable period ending on or after 01/01/2013 rounded up to next whole
number)
If the AP straddles 01/01/2016
Apportioned AIA Limit = (Apportioned AIA for chargeable period ending on
31/12/2015 rounded up to next whole number) + (Apportioned AIA for chargeable
period ending on or after 01/01/2016 rounded up to next whole number)
If the AP straddles 01/01/2019
Apportioned AIA Limit = (Apportioned AIA for chargeable period ending on
31/12/2018 rounded up to next whole number) + (Apportioned AIA for chargeable
period ending on or after 01/01/2019 rounded up to next whole number)
If the AP straddles 01/01/2021
Apportioned AIA Limit = (Apportioned AIA for chargeable period ending on
31/12/2020 rounded up to next whole number) + (Apportioned AIA for chargeable
period ending on or after 01/01/2021 rounded up to next whole number)
In any other case
Apportioned AIA Limit = (Apportioned AIA for FY1) + (Apportioned AIA for
FY2) rounded up to the next whole number
V3.7 6 Feb-19
Box 172 + Box 173 = Apportioned AIA limit
3. Examples
1. AP 01/01/2010 to 31/12/2010
Daily basis
The AP straddles two FYs (and 01/04/2010).
No of AP days in FY1 = 90 (01/01/2010 to 31/03/2010)
Apportioned AIA for FY1 (50,000 / 365) x 90 = 12,328.76
Rounded up to 12,329
No of AP days in FY2 = 275 (01/04/2010 to 31/12/2010)
Apportioned AIA for FY2 (100,000 / 365) x 275 = 75,342.46
Rounded up to 75,343
The apportioned AIA limit is 87,672
Box 172 + Box 173 <= 87,672
Monthly basis
The AP straddles two FYs (and 01/04/2010).
No of AP months in FY1 = 3 (01/01/2010 to 31/03/2010)
Apportioned AIA for FY1 (50,000 / 12) x 3 = 12,500
Apportioned AIA for FY1 is 12,500
No of AP months in FY2 = 9 (01/04/2010 to 31/12/2010)
Apportioned AIA for FY2 (100,000 / 12) x 9 = 75,000
Apportioned AIA for FY2 is 75,000
The apportioned AIA limit is 87,500
Box 172 + Box 173 < = 87,500
2. AP 01/02/2010 to 30/04/2010
Daily basis
The AP straddles two FYs (and 01/04/2010).
No of AP days in FY1 = 59 (01/02/2010 to 31/03/2010)
Apportioned AIA for FY1 (50,000 / 365) x 59 = 8,082.19
Rounded up to 8,083
No of AP days in FY2 = 30 (01/04/2010 to 30/04/2010)
Apportioned AIA for FY2 (100,000 / 365) x 30 = 8,219.17
Rounded up to 8,220
The apportioned AIA limit is 16,303
Box 172 + Box 173 < = 16,303
Monthly basis
The AP straddles two FYs (and 01/04/2010).
No of AP months in FY1 = 2 (01/02/2010 to 31/03/2010)
Apportioned AIA for FY1 (50,000 / 12) x 2 = 8,333.33
Rounded up to 8,334
No of AP months in FY2 = 1 (01/04/2010 to 30/04/2010)
Apportioned AIA for FY2 (100,000 / 12) x 1 = 8,333.33
V3.7 7 Feb-19
Rounded up to 8,334
The apportioned AIA limit is 16,668
Box 172 + Box 173 < = 16,668
3. AP 01/04/2010 to 31/12/2010
Daily basis
The AP is wholly within the same FY.
No of AP days in FY1 = 275 (01/04/2010 to 31/12/2010)
Apportioned AIA for FY1 (100,000 / 365) x 275 = 75,342.46
Rounded up the apportioned AIA limit is 75,343
Box 172 + Box 173 < = 75,343
Monthly basis
The AP is wholly within the same FY.
No of AP months in FY1 = 9 (01/04/2010 to 31/12/2010)
Apportioned AIA for FY1 (100,000 / 12) x 9 = 75,000
Rounded up the apportioned AIA limit is 75,000
Box 172 + Box 173 < = 75,000
4. AP 01/01/2012 to 31/12/2012
Daily basis
The AP straddles two FYs (and 01/04/2012).
No of AP days in FY1 = 91 (01/01/2012 to 31/03/2012)
Apportioned AIA for FY1 (100,000 / 365) x 91 = 24,931.51
Rounded up to 24,932
No of AP days in FY2 = 275 (01/04/2012 to 31/12/2012)
Apportioned AIA for FY2 (25,000 / 365) x 275 = 18,835.62
Rounded up to 18,836
The apportioned AIA limit is 43,768
Box 172 + Box 173 < = 43,768
5. AP 01/02/2012 to 30/04/2012
Daily basis
The AP straddles two FYs (and 01/04/2012).
No of AP days in FY1 = 60 (01/02/2012 to 31/03/2012)
Apportioned AIA for FY1 (100,000 / 365) * 60 = 16,438.36
Rounded up to 16,439
No of AP days in FY2 = 30 (01/04/2012 to 30/04/2012)
Apportioned AIA for FY2 (25,000 / 365) * 30 = 2054.79
Rounded up to 2,055
The apportioned AIA limit is 18,494
Box 172 + Box 173 < = 18,494
Monthly basis
The AP straddles two FYs (and 01/04/2012).
No of AP months in FY1 = 2 (01/02/2012 to 31/03/2012)
Apportioned AIA for FY1 (100,000 / 12) * 2 = 16,666.66
V3.7 8 Feb-19
Rounded up to 16,667
No of AP months in FY2 = 1 (01/04/2012 to 30/04/2012)
Apportioned AIA for FY2 (25,000 / 12) * 1 = 2,083.33
Rounded up to 2,084
The apportioned AIA limit is 18,751
Box 172 + Box 173 < = 18,751
6. AP 01/04/2012 to 31/03/2013
Daily Basis
The AP straddles the 01/01/2013 rate change.
No of AP days in chargeable period 1 = 275 (01/04/2012 to 31/12/2012)
Apportioned AIA for chargeable period 1 (25,000 / 365) * 275 = 18,835.61
Rounded up to 18,836
No of AP days in chargeable period 2 = 90 (01/01/2013 to 31/03/2013)
Apportioned AIA for chargeable period 2 (250,000 / 365) * 90 = 61,643.83
Rounded up to 61,644
The apportioned AIA limit is 80,480
Box 172 + Box 173 < = 80,480
Monthly basis
The AP straddles the 01/01/2013 rate change.
No of AP months in chargeable period 1 = 9 (01/04/2012 to 31/12/2012)
Apportioned AIA for chargeable period 1 (25,000 / 12) * 9 = 18,750
Rounded up to 18,750
No of AP months in chargeable period 2 = 3 (01/01/2013 to 31/03/2013)
Apportioned AIA for chargeable period 2 (250,000 / 12) * 3 = 62,500
Rounded up to 62,500
The apportioned AIA limit is 81,250
Box 172 + Box 173 < = 81,250
7. AP 01/03/2012 to 28/02/2013
Daily Basis
The AP straddles the 01/04/2012 and 01/01/2013 rate change.
No of AP days in chargeable period 1 = 31 (01/03/2012 to 31/03/2012)
Apportioned AIA for chargeable period 1 (100,000 / 365) * 31 = 8,493.15
Rounded up to 8,494
No of AP days in chargeable period 2 = 275 (01/04/2012 to 31/12/2012)
Apportioned AIA for chargeable period 2 (25,000 / 365) * 275 = 18,835.61
Rounded up to 18,836
No of AP days in chargeable period 3 = 59 (01/01/2013 to 28/02/2013)
Apportioned AIA for chargeable period 3 (250,000 / 365) * 59 = 40,410.95
Rounded up to 40,411
The apportioned AIA limit is 67,741
Box 172 + Box 173 < = 67,741
Monthly basis
The AP straddles the 01/04/2012 and 01/01/2013 rate change. No of AP
months in chargeable period 1 = 1 (01/03/2012 to 31/03/2012) Apportioned
AIA for chargeable period 1 (100,000 / 12) * 1 = 8,333.33
V3.7 9 Feb-19
Rounded up to 8,334
No of AP months in chargeable period 2 = 9 (01/04/2012 to 31/12/2012)
Apportioned AIA for chargeable period 2 (25,000 / 12) * 9 = 18,750
Rounded up to 18,750
No of AP months in chargeable period 3 = 2 (01/01/2013 to 28/02/2013)
Apportioned AIA for chargeable period 3 (250,000 / 12) * 2 = 41,666.66
Rounded up to 41,667
The apportioned AIA limit is 68,751
Box 172 + Box 173 < = 68,751
8. AP 01/03/2012 to 31/01/2013
Daily Basis
The AP straddles the 01/04/2012 and 01/01/2013 rate change and is not a 12
month AP.
No of AP days in chargeable period 1 = 31 (01/03/2012 to 31/03/2012)
Apportioned AIA for chargeable period 1 (100,000 / 365) * 31 = 8,493.15
Rounded up to 8,494
No of AP days in chargeable period 2 = 275 (01/04/2012 to 31/12/2012)
Apportioned AIA for chargeable period 2 (25,000 / 365) * 275 = 18,835.61
Rounded up to 18,836
No of AP days in chargeable period 3 = 31 (01/01/2013 to 31/01/2013)
Apportioned AIA for chargeable period 3 (250,000 / 365) * 31 = 21,232.87
Rounded up to 21,233
The apportioned AIA limit is 48,563
Box 172 + Box 173 < = 48,563
Monthly basis
The AP straddles the 01/04/2012 and 01/01/2013 rate change and is not a 12
month AP.
No of AP months in chargeable period 1 = 1 (01/03/2012 to 31/03/2012)
Apportioned AIA for chargeable period 1 (100,000 / 12) * 1 = 8,333.33
Rounded up to 8,334
No of AP months in chargeable period 2 = 9 (01/04/2012 to 31/12/2012)
Apportioned AIA for chargeable period 2 (25,000 / 12) * 9 = 18,750
Rounded up to 18,750
No of AP months in chargeable period 3 = 1(01/01/2013 to 31/01/2013)
Apportioned AIA for chargeable period 3 (250,000 / 12) * 1 = 20,833.33
Rounded up to 20,834
The apportioned AIA limit is 47,918
Box 172 + Box 173 < = 47,918
9. AP 01/04/2015 to 31/03/2016
Daily Basis
The AP straddles the 01/01/2016 rate change.
No of AP days in chargeable period 1 = 275 (01/04/2015 to 31/12/2015)
Apportioned AIA for chargeable period 1 (500,000 / 365) * 275 = 376,712.33
Rounded up to 376,713
No of AP days in chargeable period 2 = 91 (01/01/2016 to 31/03/2016)
Apportioned AIA for chargeable period 2 (200,000 / 365) * 91 = 49,863.01
V3.7 10 Feb-19
Rounded up to 49,864
The apportioned AIA limit is 426,577
Box 690 + Box 735 < = 426,577
Monthly basis
The AP straddles the 01/01/2016 rate change.
No of AP months in chargeable period 1 = 9 (01/04/2015 to 31/12/2015)
Apportioned AIA for chargeable period 1 (500,000 / 12) * 9 = 375,000
Rounded up to 375,000
No of AP months in chargeable period 2 = 3 (01/01/2016 to 31/03/2016)
Apportioned AIA for chargeable period 2 (200,000 / 12) * 3 = 50,000
Rounded up to 50,000
The apportioned AIA limit is 425,000
Box 690 + Box 735 < = 425,000
10. AP 01/06/2015 to 31/03/2016
Daily Basis
The AP straddles the 01/01/2016 rate change and is not a 12 month AP.
No of AP days in chargeable period 1 = 214 (01/06/2015 to 31/12/2015)
Apportioned AIA for chargeable period 1 (500,000 / 365) *214 = 293,150.68
Rounded up to 293,151
No of AP days in chargeable period 2 = 91 (01/01/2016 to 31/03/2016)
Apportioned AIA for chargeable period 2 (200,000 / 365) * 91 = 49,863.01
Rounded up to 49,864
The apportioned AIA limit is 343,015
Box 690 + Box 735 < = 343,015
Monthly basis
The AP straddles the 01/01/2016 rate change and is not a 12 month AP.
No of AP months in chargeable period 1 = 7 (01/06/2015 to 31/12/2015)
Apportioned AIA for chargeable period 1 (500,000 / 12) * 7 = 291,666.67
Rounded up to 291,667
No of AP months in chargeable period 2 = 3 (01/01/2016 to 31/03/2016)
Apportioned AIA for chargeable period 2 (200,000 / 12) * 3 = 50,000
Rounded up to 50,000
The apportioned AIA limit is 341,667
Box 690 + Box 735 < = 341,667
11. AP 01/01/2014 to 31/12/2014
Daily Basis
The AP straddles the 01/04/2014 rate change.
No of AP days in chargeable period 1 = 90 (01/01/2014 to 31/03/2014)
Apportioned AIA for chargeable period 1 (250,000 / 365) * 90 = 61,643.83
Rounded up to 61,644
No of AP days in chargeable period 2 = 275 (01/04/2014 to 31/12/2014)
Apportioned AIA for chargeable period 2 (500,000 / 365) * 275 = 376,712.32
Rounded up to 376,713
The apportioned AIA limit is 438,357
V3.7 11 Feb-19
Box 172 + Box 173 < = 438,357
Monthly basis
The AP straddles the 01/04/2014 rate change.
No of AP months in chargeable period 1 = 3 (01/01/2014 to 31/03/2014)
Apportioned AIA for chargeable period 1 (250,000 / 12) * 3 = 62,500
Rounded up to 62,500
No of AP months in chargeable period 2 = 9 (01/04/2014 to 31/12/2014)
Apportioned AIA for chargeable period 2 (500,000 / 12) * 9 = 375,000
Rounded up to 375,000
The apportioned AIA limit is 437,500
Box 172 + Box 173 < = 437,500
12. AP 01/04/2018 to 31/03/2019
Daily Basis
The AP straddles the 01/01/2019 rate change.
No of AP days in chargeable period 1 = 275 (01/04/2018 to 31/12/2018)
Apportioned AIA for chargeable period 1 (200,000 / 365) * 275 = 150,684.93
Rounded up to 150,685
No of AP days in chargeable period 2 = 90 (01/01/2019 to 31/03/2019)
Apportioned AIA for chargeable period 2 (1,000,000 / 365) * 90 = 246,575.34
Rounded up to 246,576
The apportioned AIA limit is 397,261
Box 690 + Box 735 < = 397,261
Monthly Basis
The AP straddles the 01/01/2019 change.
No of AP months in chargeable period 1 = 9 (01/04/2018 to 31/12/2018)
Apportioned AIA for chargeable period 1 (200,000 / 12) * 9 = 150,000
Rounded up to 150,000
No of AP months in chargeable period 2 = 3 (01/01/2019 to 31/03/2019)
Apportioned AIA for chargeable period 2 (1,000,000 / 12) * 3 = 250,000
Rounded up to 250,000
The apportioned AIA limit is 400,000
Box 690+ Box 735 < = 400,000
13. AP 01/04/2020 to 31/03/2021
Daily Basis
The AP straddles the 01/01/2021 rate change.
No of AP days in chargeable period 1 = 275 (01/04/2020 to 31/12/2020)
Apportioned AIA for chargeable period 1 (1,000,000 / 365) * 275 = 753,424.65
Rounded up to 753,425
No of AP days in chargeable period 2 = 90 (01/01/2021 to 31/03/2021)
Apportioned AIA for chargeable period 2 (200,000 / 365) * 90 = 49,315.06
Rounded up to 49,316
The apportioned AIA limit is 802,741
Box 690 + Box 735 < = 802,741
V3.7 12 Feb-19
Monthly Basis
The AP straddles the 01/01/2021 change.
No of AP months in chargeable period 1 = 9 (01/04/2020 to 31/12/2020)
Apportioned AIA for chargeable period 1 (1,000,000 / 12) * 9 = 750,000
Rounded up to 750,000
No of AP months in chargeable period 2 = 3 (01/01/2021 to 31/03/2021)
Apportioned AIA for chargeable period 2 (200,000 / 12) * 3 = 50,000
Rounded up to 50,000
The apportioned AIA limit is 800,000
Box 690+ Box 735 < = 800,000
4. Annual Constants
Allowance Limits Annual Investment Allowance (AIA)
2007 N/A
2008 50,000
2009 50,000
2010 100,000
2011 100,000
01/04/2012 25,000
01/01/2013 250,000
01/04/2014 500,000
01/01/2016 200,000
01/01/2019 1,000,000
01/01/2021 200,000