Short accounting period/CTAP and first year allowances not being restricted

Article ID

ias-12032

Article Name

Short accounting period/CTAP and first year allowances not being restricted

Created Date

13th October 2015

Product

IRIS Business Tax

Problem

There is a short accounting period / CTAP but the first year allowances are not being restricted or apportioned.

Resolution

According to Tolley’s Tax Computations the first year allowance, unlike the WDA, is a flat rate and should not be time apportioned.