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
