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?
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