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CAs on car that had private use then was 100% business

Can someone remind me what to do about this please?

A taxi driver has had his car for four years; it was 80% business for two years then 100% business for two years because he bought another car for private use. It's still sitting in its single asset column in my comps. He sold it in 10/11 and there is a residual unclaimed value of about £2500 (potential balancing allowance) to deal with. Should I have t/f it to the general P&M pool back when the usage changed? Or can I claim the balancing allowance (adjusted for historic private ppn?) now on the basis that it should still be in its single asset pool due to historic usage?

Thanks for any help on this.

Abby

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I would use

your option 2:

claim the balancing allowance adjusted for historic private ppn

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Agreed

The balancing allowance should be adjusted by the average business use over the period of use which sounds like roughly 90% but should be the fraction allowances actually given over allowances deducted in single pool x balancing allowance.

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Excellent, I'll get on with it! It's nice to sort things out quickly at this time of year, thanks.

Abby

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