Capital Allowances - Balancing Charge?
Hi all. I have a client who has ceased being self employed in the tax year 2011-2012 and become an employee. I have taken over from a previous accountant but have been unable to get any previous years paperwork or calculations due to the Accountant being seriously ill.
I know there is a Capital Allowances balance b/fwd of £6k which needs dealing with. My client does not know what the capital allowance is or that he was even claiming capital allowances. I think that it is for his vehicle which he still has.
My question is do I write off the whole balance as a balancing charge (£6k) for the client to then have to pay tax on it? I have been advised by HMRC that is what needs to happen but would like other accountants views.
Thank you for any help provided.
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