Capital Allowances - Lower Rate

Keant1591

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It is possible to claim capital allowances at a lower rate than 12.5% for Plant and Machinery. Agricultural Contractor claiming capital allowances at 12.5% but find when assets are traded in it always results in a balancing charge having to be paid or rolled over. Can a lower rate be chosen to reflect actual life of the assets.
 
Hello,

I stand to be correct be I don’t think so ., I think the only assets that can be written down faster are taxis ... I don’t think there is any provision for writing down assets slower for tax purposes ..

The rate is set down in legislation.,
 
I agree with Mary 5. Taxis, and hire cars, I think can both get accelerated rates. Some types of SEAI approved equipment can get 100% in one year but I'm not sure that this relates to the type of equipment used by an agricultural contractor.
 
Thanks folks, was actually wondering about writing them down slower than faster though, because when assets are traded in there is always balancing charges. Would it be possible to write them down at say 8 or 10% per annum.
 
No. I think you could choose not to write them down at all, but if you do write down you have to use the rates provided.

Not the question you asked, but leasing would appear to be the norm in the industry - tax allowances are based in lease payments rather than a capital allowance.
 
on a similar theme, the Accelerated Capital Allowances for the purchase of electric cars, is the 100% in year 1 only for new cars purchased or the purchase of any fully electric cars, if the former then what is the rate to claim capital allowances for second hand electric cars.

I have a Ltd Company and thinking of purchasing electric car, as no BIK also on the running costs, but unsure if the ability to claim 100% in year of purchase is only for new fully electric cars or can you claim it for second hand electric cars ?
 
Thanks Redonion, they always seem to purchase on HP so normal capital allowances apply.They prefer it this way as they get vat back straight away.
 
They prefer it this way as they get vat back straight away.
But, are they not paying interest on the VAT to the finance company by doing that?
Sorry, it's been a long time since I worked in asset finance so I might be confusing things.
 
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