Balancing Allowances / Charges

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sloshed
sloshed Registered Posts: 100 Dedicated contributor 🦉
in General accounting discussion
Hi

Firstly I need to point that I am employed in practise and not self employed but hopefully you will be able to help me with your views.

Situation is client has ceased during the year, and retained Van and Plant & Machinery.

Van has WDV of £8500 and valued by client at cessation at £7K,

P & M has WDV of Nil and valued by client at cessation at £150,

My query is does a balancing charge / allowance occur when there are no actual proceeds, as I seem to remember (although in the very distant grey matter, that you actually need to receive proceeds to be able to claim balancing allowances in the year of cessation / disposal)

Any help would be appreciated.

Many thanks

Comments

  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    Assuming this is a sole-trader then, yes, use OMV as proceeds.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    Omv?
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    Open Market Value
  • sloshed
    sloshed Registered Posts: 100 Dedicated contributor 🦉
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    Thanks Dean that is a great help - Just had at the back of my mind that you need to actually receive proceeds must have been a blonde moment - Off to buy some blonde hair dye!

    Many thanks

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