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?
- Goodwill complications 75 2
- HMRC Let Property Campaign 1,749 18
- Personal pension 180 3
- Practical Courses - Accounts Prep 84 1
- VAT Registration for locum Doctors 266 7
- IRIS Accounts Production - Dividends shown in P&L? 214 6
- Late Registration for VAT 94 2
- Invest in ''buy to let'' property 980 25
- Gov.UK - can we have HMRC.gov.uk back? 949 26
- RTI and corrections to payroll 1,133 12
- property development 257 8
- Registering a company late 163 5
- Business rates consultancy 101 2
- sale of house 627 18
- Corporation tax penalty 1,506 9
- Part Disposal of Freehold 323 13
- It’s our staff Christmas party this week, what did you do for your firm? 1,813 15
- I've not operated a payroll - will i get charged on late PAYE payments? 360 6
- Are HMRC staff on early 375 5
- Backdated VAT registration claim 134 2
- TheTax Donut 992
- Double taxation relief - same income, different individual 655
- Buying goods in US and selling them to company in US 611
- Follower cases 474
- Limited company purchase of property 398
- Hive up 397
- corporate hierarchy 372
- Accounting referance change & deficient accounts. 368
- LIVE chat, starting now 302
- AIA or IFA 200