Capital allowances - 1997

lizzy

Hi, does anyone have knowledge of capital allowances for 1997. I have limited info from previous accountant re: the purchase but it is now being sold. I have seen that they started 2 July 1998 so would the sales price just be put to the pool as normal?

Many Thanks

burg

All that should be important now is the Tax WDV and the proceeds received. I would imagine by now the item has used all available Tax WDA's and will have a nil value for tax so there will be a balancing charge of the proceeds received.

lizzy

Thank you, that is what I have done: I have used the market value as the vehicle is not used in the business but has not been sold. Client has now told me that next year it may used in the business again though - at that point I put it back into the pool at it's market value at that point - do you agree?? Many Thanks

burg

Hmmm. If its the case that it is still available for business use but not being used then I may be tempted to adjust the private use element on the asset in so that no WDA's are claimed. Then adjust it next year accordingly. That stops the need to do a balancing charge/allowance and then add it back next year. When the vehicle is then sold or permanently opted to not be used in the business then dispose of it as above.