Captial Allowances

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
Can anyone help? The Business Support Helpline supplied by CCH for members in practice have suggested I use s266 of the Capital Allowances Act 2001 and elect to treat a transfer of assets for a client to an incorporated body at the tax written down amount.

Does anyone have a form of wording I can use for this declaration?

Thanks,

Ben Elliott

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Captial Allowances

    I must admit i'm not entirely familier with what you are asking but I take it that you are basically transfering assets from a sole trader/partnership to a limited company...

    Can the sole trader/partnership not sell those assets at the tax written down value to the company?

    This way there is no tax implication on the assets making any such chargable gains for the sole trader/partnership and releases some money for the proprietors.

    Just a thought :D

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Captial Allowances

    That is what I want to do. I need to make the declaration to the Revenue under s266 of the act so they know what is happening. I just wondered if there was a form of words that were required.

    Ben
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Captial Allowances

    We've dealt with several sole traders to Limited company conversions and have never made any declarations.

    All assets were introduced at the twdv (remembering not to claim first year allowances again) and nothing was ever sent in extra to the Revenue.

    If you find out any different let me know. We have a chartered accountant who deals with the Limited Companies and she has never done it.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Captial Allowances

    That was what I thought too Annette. I really wasn't sure though. So thanks for that.

    If you do find out anything about this Ben then please let us know.

    Regards

    Dean

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