Balancing Charges on Capital Allowances

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Dawny
Dawny Registered Posts: 62 Regular contributor ⭐
in General accounting discussion
I need a little recap on the treatment of fixed assets when a sole trader ceases trade.

I have a very small pool of general assets of £176 and a motor car.

Am I right in thinking that I can write off the general pool with a balancing charge?

As with the motor car, do I write this down to the current market price? Would this be the same treatment for depreciation and capital allowances when I do the taxation computation?

Thanks in advance for any help!

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  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    As the pool is so small, I would write that off anyway under AIA.
    With regard to the vehicle that would depend on the value, but I would be tempted to simply write it off at book value as the balancing charge. It really depends on whether you are talking hundreds or thousands.

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