Capital Allowances
Dawny
Registered Posts: 62 Regular contributor ⭐
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.
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.
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Comments
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CAA 2001 s.61(1)(d) and (f).6
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Thank you.0
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Write it down at 18% per year.
Ryan0 -
You seem very confident Ryan could you back up your assertions with links to legislation?RyanMIP said:Write it down at 18% per year.
Ryan0 -
https://www.gov.uk/work-out-capital-allowances/rates-and-poolsMarieNoelle said:
You seem very confident Ryan could you back up your assertions with links to legislation?RyanMIP said:Write it down at 18% per year.
Ryan
Ryan0 -
How is this relevant in the case of a company disposing of assets?0
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I don't see you giving any constructive answer!!?? Are you an AAT??MarieNoelle said:How is this relevant in the case of a company disposing of assets?
Ryan
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The constructive answer was given by @KernowAccountant hence I have nothing to add.1
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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.mrme89 said:There's only a handful of decent contributors on this forum. I see the numbers haven't changed.
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.0 -
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