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Dear tutor,
I am still confused by where to charge once AIA limit is exceeded.
In the above question The purchases exceed the limit, so why do we not allocate the £28k to s.r first.
Why do we not Add up the other 3 (non special rate) = £60+£60+£84+204 and then allocate the £28k to s.r first, as that is my understanding of the quote below
“AIA should be allocated firstly to s.r expenditure”?
Thermal insulation is s.r. whereas the other 3 items are not?
Please try to explain.
Many thanks
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