Treatment of personal assets
The Magician
Registered Posts: 96 Epic contributor ๐
Hi guys,
Really hope you can help.
If a fixed asset was used in a personal capacity prior to being introduced into a sole trader business, is it correct that you cannot claim the AIA and the capital allowance is restricted to 20% of the WDA year on year?
And the asset is introduced at its market value?
Thanks so much.
Really hope you can help.
If a fixed asset was used in a personal capacity prior to being introduced into a sole trader business, is it correct that you cannot claim the AIA and the capital allowance is restricted to 20% of the WDA year on year?
And the asset is introduced at its market value?
Thanks so much.
0
Comments
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The Magician wrote: ยปHi guys,
Really hope you can help.
If a fixed asset was used in a personal capacity prior to being introduced into a sole trader business, is it correct that you cannot claim the AIA and the capital allowance is restricted to 20% of the WDA year on year?
And the asset is introduced at its market value?
Thanks so much.
Interesting question...................took a bit of digging but.........................
In short, you treat the fixed asset as having been bought on the day the sole trade business started and claim AIA.
(As an aside, I think you are only allowed to claim WDA's when transferring sole trade assets to a limited company or other business, S.266, CAA 2001).0 -
Sole trader with tools/equipment already owned - I would take AIA at value of item only (or CA if preferred).0
