Capital Allowances

[Me Fein]

Do you have to claim full capital allowances for a trade in the following circumstances

Profit 20000
Captal Allowance 10000

20000 * 20%= 4000
Tax Credits = 3300
Tax payable = 700

Would it be enough to only use 3500 of capital allowance in above case? Or would you have to claim full amount and leave 1300 of tax credits unused.

Thanks

 

[srase]

You claim capital allowances in priority to tax credits. You can't claim just enough capital allowances to bring tax liability down to zero and carry balance forward.

In your example the full €10,000 would be used (or deemed to be used) in the year with no balance carried forward.