First Year Allowances

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
Hi - just a query regarding first year allowances, and a situation I've not come across before.
I know you can claim a full first year allowance even if your CAP wasn't a full year (ie new business start up).
My question is - if you start and finish a period of self employment in the same year (ie begin in June 06, and finish in Dec 06) can you still claim the full FYA's?

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:First Year Allowances

    No.

    You would have a balancing allowance on the difference between the cost price and market value at date of cessation.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:First Year Allowances

    Thanks.

    Can I just clarify - Tools and equipment were £2000 upon commencement of self employment, and had a market value of £1500 at the end.
    Is the balancing allowance then £500? Or only a percentage of this?

    My other theory was that you claimed the FYA's, but then calculated a balancing charge between the WDV and the market value at the end of period of self employment. So your answer has helped me get my head round the issue - thanks

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