100% Tax Deductions on Dental Equipment

I've just written a few words for the monthly tax tips column of The Probe regarding claiming allowances on dental or surgery equipment. If you want to read that you can click here ...

I was going to include an example but decided against it as I ran out of words, but here I can write as much as I like, so I will...The example was kindly supplied by Tim Gammon of Lease UK, a specialist dental finance company, but I think it really proves just how much you need to get a specialist in to make sure you make the right decision.
Practice with year end 31st Dec 2008, Buys equipment costing £30k on 1st Feb 2008 AND a second surgery of £45k on 30th November 2008. The £30k qualifies for a 50% First Year Allowance (F.Y.A) i.e £15k and the balance £15k goes into General Pool in next period. As the Practice's year end spans the 6th April "opening "date the Annual Investment Allowance (A.I.A) is  reduced proportionately to 3/4 of the £50k Allowance; so 3/4 of £50k is £37,500 so £37,500 is written off. The balance of the Annual Investment Allowance  i.e £45,000 less £37,500 = £7,500 is added to General Pool and would qualify for a hybrid 21.25% Writing Down Allowance  (W.D.A.)  of  the 21.25 X £7,500 =£1,594.
 
Total Allowances:~
50% F.Y.A   £15k
      A.I.A    £37.5k
      W.D.A  £1,594
TOTAL      £ 54,094
 
This compares with a 50% First Year Allowance (i.e 50% of £30k +£45k = £75k) TOTAL £37,500 under the pre Aril 6th rules.

If you're thinking of upgrading your surgery and want to make sure you do it tax efficiently give us a ring or call Tim from Lease UK.