Balancing charge on general pool and FYA additions
- Article ID
- ias-11887
- Article Name
- Balancing charge on general pool and FYA additions
- Created Date
- 21st April 2015
- Product
- IRIS Business Tax
- Problem
- Client has a balancing charge on the general pool as disposal proceeds are greater than the pool brought forward + non first year allowance (FYA) additions. There are also additions on which FYAs are being claimed and these are being shown in the pool carried forward field.
- Resolution
- Business Tax is carrying out the calculations correctly. Expenditure on assets on which FYAs have been claimed is not pooled immediately. Instead it is added to the pool brought forward at the start of the next chargeable period. Businesses may reduce the balancing charge by not claiming FYAs on part of the expenditure on additions.
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