Category Archives: Pension Payments

In a separate article, we looked at First Year Allowance (FYA) that typically involves allowing taxpayers to write off a percentage of the expenditure of providing a capital asset in the year it was acquired. Writing Down Allowance (WDA) is different in that you can claim up to a set percentage of the balance (such as 20%) to be claimed as capital allowance each year. The allowance is calculated on the written-down value, i.e. original cost minus all the capital [...]

A lease can be of a building or land which is received by the lessee along with several permanent fixtures forming part of the asset. Alternatively, the lease can be an equipment lease for plant and machinery purchased by a lessor and leased out to a lessee. The plant and machinery then becomes a fixture to a building or land used for carrying on a qualifying activity. In the case of equipment lease mentioned above, the lessor and lessee can [...]

Plant and Machinery Allowances (PMA) can typically be claimed only by the owner of the asset. However, in hire purchase contracts, the hirer can claim PMA on the hired asset even though legally that person is not yet the owner. The legal owner, the person who buys the asset and hires it out, cannot claim PMA. The case with fixtures is also similar. Fixtures are attachments to buildings or land that are considered permanent and provide a lasting improvement to [...]