Closing a business

jmp2008

Hi ! I'd like to know your opinion on this matter.

A client (self-employed) wants to close his business because he is moving abroad. I know he will be charged for all the profits he made up to the point he stop trading, but he is planning to keep one of his asset which is (laptop and the software worth 5,000.00) for himself. Will this be considered as a gift, therefore will be disposed at its market value ? Or withdrawal ? Or if you have any idea let me know thanks....


JMP

Monsoon

If the asset was brought into the business, it needs to be brought out of it again at current market value.

I don't mean the best price you can get for it should all the best buyers in the country be in one room bidding like a frenzy.... I mean fire sale, everything must go tonight, most you can scrape together at short notice market value.

Treat it as a normal disposal by adding the proceeds back into the CA pool. If AIA was claimed, the total 'proceeds' will be a balancing charge.

Laptops and software devalue very quickly, don't they....

jmp2008

thanks for your input Monsoon!!! greatly appreciated...