Car purchased and written off in same tax year
jilt
Registered Posts: 2,892 Beyond epic contributor 🧙♂️
I have a client who purchased a car in June 09 and wrote it off in Dec 09. She paid £4000 for it and received £2800 from the insurance company.
My brain has ceased and I'd be grateful if someone could clarify the following.
There are no capital allowances to claim, but I can include the £1200 as a loss on sale of assets in the P & L account. But I can claim the 20% WDA on the new car she bought in Dec 09
Roll on February!
My brain has ceased and I'd be grateful if someone could clarify the following.
There are no capital allowances to claim, but I can include the £1200 as a loss on sale of assets in the P & L account. But I can claim the 20% WDA on the new car she bought in Dec 09
Roll on February!
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Comments
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Won't you treat it the same as a disposal?
So a balancing allowance on sale of £1200.0 -
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This is the first time I've encountered this and wondered if I couldn't do that as no capital allowances have ever been claimed on it before as bought it in the same tax year it was written off.
Its the only way I can see to do it, as you don't claim capital allowances in the year of disposal.0 -
So even if no allowances have previously been claimed you can claim a balancing allowance, thanks PGM, for some reason I thought you could only claim a balancing allowance if you'd already claimed some sort of allowance on that asset before.
Sounds really stupid now cos if it was a balancing charge you'd have to pay it as you'd have made a profit on the sale. My defence is it's been a very very busy January!0
