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?
- CIS. Why is it so complicated? 2,299 25
- New Employers Helpline 170 4
- Limited company director - other earnings in the tax year 145 3
- Software recommendations 234 1
- Share transfer question 349 17
- Land Rover Discovery 3.0 SDV6 255 Comm Auto 2 seat 285 7
- The stupidity continues 346 10
- qualifying for 1/9th tax credit on foreign dividend 149 2
- HMRC & daft penalty 2,394 19
- Overlap relief 748 19
- What is IRIS World like? 345 8
- Pension contributions 361 10
- Offsetting CT losses against another company 139 4
- Do you have to declare business expenditure on a personal credit card on your P11D? 477 11
- Do you use sign up lists on your website 166 1
- CIMA at the age of 35?? 465 9
- Setting up PAYE scheme without UTR 261 8
- Free project management software with Gantt charts, preferably on-line 204 1
- If you've had any issues posting: Please read this 559 10
- Budget 2015 - take two 226 3
- Has anyone been affected by the RBS payment breakdown? 433
- Straight line write off of Purchase Goodwill ??? 428
- WIP Software 292
- FRS 102 compliant illustrative accounts for an insurance company 286
- No payroll scheme in place 227
- CGT, PPR and transfer of equity to spouse. 225
- Do subcontractors on work for residential (student accomodation) construction 204
- Is there anything wrong with this? 196
- Small Part Disposal of Property 177
- Uncommercial property business 173