Capital allowances

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noodles
noodles Registered Posts: 308 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
i understand that you can not put capital allowances in final year of trading but what if it is a whole year of trading, it does not seem right not to allow a year. Would one not be better off ceasing to trade day 1 of following year so that they get a year of allowances and then no profits or cap all for other year, especially if the year end is mid year?

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  • EAP
    EAP Registered Posts: 63 Regular contributor ⭐
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    Wouldn't you sell off all your assets as part of ceasing to trade? Or transfer them to personal use which would have the same effect (I think)? So you would get balancing allowances etc. instead of cap. allows?
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
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    Yes I think you are right, I did not think of selling them to myself personally.
    thank you

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