Capital Allowances Query
acsacsacs
Registered Posts: 43 Regular contributor ⭐
Quick question
A client has recently setup a new limited company with another director and has sold to the business assets valued at £1,500.00
Now these assets had been used in a previous sole trader business and capital allowances had been claimed against them.
With the introduction of these into the new business (25% shareholder) is the business able to claim capital allowances on them.
I am sure I remember from a while ago that you couldn't do this, but not really sure as the limited company is a separate entity?
Any help appreciated.
Thanks.
A client has recently setup a new limited company with another director and has sold to the business assets valued at £1,500.00
Now these assets had been used in a previous sole trader business and capital allowances had been claimed against them.
With the introduction of these into the new business (25% shareholder) is the business able to claim capital allowances on them.
I am sure I remember from a while ago that you couldn't do this, but not really sure as the limited company is a separate entity?
Any help appreciated.
Thanks.
0
Comments
-
Yes the Limited Co can claim CA but not AIA as introduced by related party. You must ensure you account for any balancing allowance or charge on the sole trader for the £1500 disposal.0
-
Cheers groundy
Not sure the client will want to claim the allowances anyways, may just have to tick off on IRIS to not claim this.
Noted about the related party thing, something I had missed.
Thanks.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 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