Capital Allowances

DawnyDawny Settling In NicelyPosts: 60MAAT, AAT Licensed Accountant
I’m preparing accounts for a company in its last year of trading before going dormant and I just wanted to check my treatment of the tangible assets and the capital allowances.

The company was claiming capital allowances on a small pool. When the offices were closed the majority of these assets were destroyed, and a few were sold.

In the corporation tax return calculation, I have added back depreciation and a loss on the disposal of assets.

In the capital allowance calculation, I have added in the proceeds of the assets which were sold (they did not exceed the cost price), and now I am left with a value to the pool to carry forward of £13,791, even though there are no assets left as they were destroyed. Should I reflect the destroyed assets in the capital allowance calculation somehow or do we still claim for capital allowances on this pool balance in the future?

I hope this makes sense and thank you for any help in advance.

Best Answer

Answers

  • DawnyDawny Settling In Nicely Posts: 60MAAT, AAT Licensed Accountant
    Thank you.
  • RyanMIPRyanMIP LincolnshirePosts: 50Registered
    Write it down at 18% per year.

    Ryan
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,462Moderator, MAAT, AAT Licensed Accountant
    RyanMIP said:

    Write it down at 18% per year.

    Ryan

    You seem very confident Ryan could you back up your assertions with links to legislation?
  • RyanMIPRyanMIP LincolnshirePosts: 50Registered

    RyanMIP said:

    Write it down at 18% per year.

    Ryan

    You seem very confident Ryan could you back up your assertions with links to legislation?
    https://www.gov.uk/work-out-capital-allowances/rates-and-pools

    Ryan
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,462Moderator, MAAT, AAT Licensed Accountant
    How is this relevant in the case of a company disposing of assets?
  • RyanMIPRyanMIP LincolnshirePosts: 50Registered

    How is this relevant in the case of a company disposing of assets?

    I don't see you giving any constructive answer!!?? Are you an AAT??

    Ryan
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,462Moderator, MAAT, AAT Licensed Accountant
    The constructive answer was given by @KernowAccountant hence I have nothing to add.
    mrme89
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,462Moderator, MAAT, AAT Licensed Accountant
    mrme89 said:

    There's only a handful of decent contributors on this forum. I see the numbers haven't changed.

    It wasn't my intention to discourage Ryan from contributing. What is dangerous though it's to appear so confident that future readers take it as gospel.
    I wouldn't want this forum to turn into another well known accountancy forum where people are too scared to ask a question for fear of appearing silly. However maybe contributors could make it clearer when they ask or answer a question in what capacity (student, MIP, etc...) and if they can provide back up on more technical answers. I think it would help the forum in the long term.
  • KernowAccountantKernowAccountant Settling In Nicely Posts: 120Registered
    edited March 2016
    A significant issue in my opinion is a lack of regulation by the AAT, of its members. The AAT seem to allow some individuals to practice where they patently shouldn't.

    I make my comments below as a member of the AAT who has sat and passed the exams.

    I am an ACCA, and while it is much harder to obtain a practicing certificate from the ACCA (and students generally cannot practice) I wholeheartedly agree with this tougher stance.

    It is my view that an individual with ONLY the knowledge gained from AAT will not have the requisite ability to engage in public practice. Either an additional, higher level, qualification and/or a considerable amount of experience (in a practice environment) is required.

    This is a matter which has frustrated me for some time and hence why I intend to resign my AAT membership this year when my renewal falls due. I refuse to support an organisation which does not seem to value the standards that should be achieved by the profession as a whole.

    There will, no doubt, be those that disagree. I suspect that such individuals will be individuals that have not undertaken further study beyond AAT - I believe it was Rumsfeld who spoke about 'unknown unknowns' - the stuff that you don't know that you don't know. With knowledge from AAT alone - that's an awful lot!

    To be clear, this is not an attack of AATs; simply an observation of the failings of the qualification and professional body in a number of cases.
    phoenixd
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