TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Do you use HMRC online services for filing corporation tax returns?

If so you should know that HMRC have not yet updated this for the change in the annual investment allowance (AIA) limit to £200,000 which applies from 1 January 2016. If you have an urgent need to file a company tax return before 29 February 2016, you should contact the relevant HMRC office for further advice.

The maximum amount of the AIA was increased temporarily to £500,000 from April 2014 – 31 December 2015 after which it was intended to fall to £25,000. Clause 8 of the Finance Bill 2015 – 16 now sets the level of the AIA allowance at £200,000 from 1 January 2016.

Remember that where a business has a chargeable period that spans the date of change on 1 January 2016, a transitional rule applies when calculating AIA entitlement. The maximum allowance for that business’s transitional chargeable period comprises two parts:

  1. the AIA entitlement based on the temporary £500,000 annual cap for the portion of the period falling before 1 January 2016; and
  2. the AIA entitlement based on the £200,000 cap for the portion of the period falling on or after 1 January 2016.

You can file online before the Corporation Tax online service is updated if:

  • you are not claiming AIA, or
  • you are making a claim to AIA that does not exceed the earlier AIA limit