Capital Allowances Query

acsacsacs
acsacsacs Registered Posts: 43 Regular contributor ⭐
edited June 18 in AAT member discussion
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.

Comments

  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    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.
  • acsacsacs
    acsacsacs Registered Posts: 43 Regular contributor ⭐
    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.

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