Balancing Charges on Capital Allowances
Dawny
Registered Posts: 62 Regular contributor ⭐
I need a little recap on the treatment of fixed assets when a sole trader ceases trade.
I have a very small pool of general assets of £176 and a motor car.
Am I right in thinking that I can write off the general pool with a balancing charge?
As with the motor car, do I write this down to the current market price? Would this be the same treatment for depreciation and capital allowances when I do the taxation computation?
Thanks in advance for any help!
I have a very small pool of general assets of £176 and a motor car.
Am I right in thinking that I can write off the general pool with a balancing charge?
As with the motor car, do I write this down to the current market price? Would this be the same treatment for depreciation and capital allowances when I do the taxation computation?
Thanks in advance for any help!
0
Comments
-
As the pool is so small, I would write that off anyway under AIA.
With regard to the vehicle that would depend on the value, but I would be tempted to simply write it off at book value as the balancing charge. It really depends on whether you are talking hundreds or thousands.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership