Annual Investment Allowance (AIA) and Selling an Asset

Hi,

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?

 

Thank you.

Comments
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ACDWebb |
ACDWebb's picture

Thanks for your reply again

Anonymous |

If you are VAT registered

ACDWebb |
ACDWebb's picture

Not VAT registered

Anonymous |

You probably should to maintain the trail

ACDWebb |
ACDWebb's picture

Thank you

Anonymous |