Friday brainfreeze - election s.266 CAA 2001

MarieNoelleMarieNoelle Trusted RegularHampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,325
Good afternoon,
I think I am getting confused between tax and accounting treatment of assets introduced into Ltd co on incorporation.
Sole trader incorporates and transfers computer equipment to Ltd co. We plan to make an election under s266 so no balancing charge arises. Assets are transferred at TWDV which is nil (AIA claimed).
However the Ltd co has now acquired assets worth say £800 which I need to show on balance sheet. Is the double entry to DLA?
It doesn't make sense to me...
Anyone able to clarify where I am going wrong? Sorry been a long week...
Thanks

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,325
    Thanks @TaxManager
    So this is what I was going to do.
    But then if CR to DLA - isn't that the same as receiving proceeds on disposal of £800, which I have to show in cessation accounts for the sole trader, creating a balancing charge?
    This is where I am getting confused!
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