My company accounts year ended on 31st December 2006. I ordered a new machine on 22nd December and received an invoice on 24th December for the machine, due for payment 30 days later. The machine was not delivered until early in January because of the Christmas holidays. Can I still claim the capital allowances in my accounts to 31st December 2006?
Unfortunately, the date that matters is usually the date on which the obligation to pay becomes unconditional. This is normally the invoice date but in this case, on the 31st December, your obligation to pay was still conditional on the delivery on the machine and had not yet become unconditional. Depending on the amount involved you could consider extending the year end to bring the date within your accounting period to be able to claim the first year allowances in full.