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Pickwick Limited's current account period end date is 31 December
Account period end dates for 31 December 2001, 2002 and 2003 are entered in IRIS
The corporation tax computation is being prepared for the 31 December 2003
Pickwick’s factory was purchased on 1 July 1998 for £150,000 of which £50,000 was for the land
In this situation:
Select Edit | Building Allowances
Click New.
Enter the following information for the asset:
Description “Building 1”
Total “£150,000”
Qualifying “100,000”
Date “01/07/98”
Move the cursor to the Allowance start date field. This field will be completed with the date 01/01/98. Business Tax looks at the existing account period end dates and extrapolates the allowance start date.
Click OK to save the asset.
On the Building Allowances screen the Res BF column will display the residue brought forward of £80,000 for the building. Five years of a WDA of £4,000 have been deducted from the qualifying cost to give the correct brought forward value.
The Res CF (Residue Carried Forward) at the far right of the screen will be £76,000 as another year’s worth of allowances has been claimed.
