My pro-bono CIC client incurred capital spend in their first year when all income was grant funded. They didn't spend all the grant so I used your helpful tip elsewhere to take only the applied grant to the I&E statement. So far so good.
Sadly their 1st year of accounts are > 1 year: May 3 2016 - May 31 2017. Apportioning the capital spend (and the add-back of disallowed Depreciation) across the two CT periods results in a Tax liability in CT period May 3 - 31 2017 because the balance of the unused First year 100% allowances can only be now applied at 25% pa.
Is there a way around this? I can't believe HMRC really wants the £17.10p involved and its embarrassing because of course i have already declared NIL CT payable back in January...
Grateful for another clever tip.
Hmmm, "Small Pool Write-off" at 100%? any reason why I shouldn't?
Thanks Alastair I imagine that option is too late as I have already submitted accounts, CiC Report etc and declared NIL CT to Pay back in January Co incorporated May 3 2016
I have resolved the problem by using the Small Pool write off