Annual Investment Allowance (AIA) and Selling an Asset
I've got a couple of examples and a few questions, if any one can answer them it would be a great help. Thank you.
Example A: I filled in my first self-assessment tax return last year (2009/2010) and had an Annual Investment Allowance (AIA) of £500 for a computer. This tax year (2010/2011) I sold the computer for £300.
Question 1: Do I put the £300 down as a Capital Allowance this tax year? And put the difference of £200 as a Balancing Charge?
Question 2: Does any Balancing Charge add to my taxable income?
Question 3: How do I go about invoicing this? Do I invoice regularly as a sales invoice or do I need to draw up an Asset Purchase Agreement (I read about that somewhere!)?
Example B: I filled in my first self-assessment tax return last year (2009/2010) and had an Annual Investment Allowance (AIA) of £100 for a hard drive. This tax year (2010/2011) the hard drive broke and went in the bin.
Question 1: Do I put a Balancing Charge of £100 down for this tax year?
- VAT on goods never entered the UK 122 6
- How much did you pay for your website 1,333 22
- Help Required 81 1
- Is a dormant CT600 needed? 130 2
- Accountancy work for Farmers 432 15
- What would you do in this situation? 315 9
- FILING COMPANY ACCOUNTS 807 25
- Who would you nominate for a Practice Excellence Award? 541 6
- Project being run jointly 62 1
- What quality paper do you use for correspondence? 263 12
- Company Name - Number of Characters 223 6
- Lloyds bank ... 325 5
- Sole trader mix up 202 2
- CIC Tax - what is trading? 122 4
- Correct treatment when one company absorbs another 127 4
- Recharging VAT 168 6
- Rent a room when not living there 945 7
- Helping out a friend 250 7
- Dealing with VAT on invoices received after VAT return submitted 225 3
- Tax Allowance on University Course 1,888 10
- CTA study material 682
- Anyone have clients that use Pay4Later to offer customers credit? 411
- Employment related securities question 258
- ATED Penalties 234
- AIM Stocks and IHT 234
- Tax Relief for overseas employees 189
- Trust for Employee 173
- Expat pension contributions? 167
- Quickbooks losing VAT return data 136
- Reclaiming overpaid employer NI contributions 122