Second-hand asset

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Psyche
Psyche Registered Posts: 187 Dedicated contributor 🦉
in General accounting discussion
Hi there
My client purchased a computer he intended for business use, but did not actually start to trade until a year later. He has introduced the computer as capital but does anyone know (a) what value it would appear in the books, I assume this would be market value of a year-old computer and (b) whether it qualifies for annual investment allowance?

Thanks!

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  • ROCK
    ROCK Registered Posts: 15 New contributor 🐸
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    Assets introduced

    If an asset is introduced into a business then it is at market value and does not qualify for AIA or FYA, only 20% capital allowance can be claimed

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