I'm new to SA returns and unfortunately have reached the last adjustment and probably the most complicated - capital allowances - without leaving a lot of time to research.
The business I'm looking at ceased as a self employed business at 31/03/14 and transferred to limited company on 01/04/14. There is one asset I'm concerned about which has a material impact on the numbers - a van purchased in November 2013, for which I assumed the self employed business claimed AIA for, but now I'm thinking it was transferred to the new company at book value - cost less 4 months depreciation, so should we only be claiming capital allowances on that 4 month write down and not the whole cost under AIA? Trouble with that is I wonder next year whether the new business can treat it as an acquisition and claim the AIA on that book value or are the transferred assets not new and therefore have to sit in a pool and then nobody gets the benefit of the AIA?
Replies (13)
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Capital allowances on transfer
Account for the balancing charge on the
Sch D comp and claim capital allowances on the limited co
?
No AIA (or WDA) in period of cessation.
And no AIA to the new limited company.
The sole trader can sell at whatever he wants to give the best tax result. Often this will be £nil, but will depend on the circumstances.
As an aside, what do you mean by claiming capital allowances on "4 month write down"? Capital allowances are based on cost and have nothing to do with depereciation, as your comment would suggest.
Capital allowances
I am not sure you have understood BKD's comment. Not being rude but read it again carefully.
@OP
You are out of your depth. Please seek help from a professional. Your posts are riddled with so many misunderstandings that it is clear you are a long way from being correct on the return. I trust that you will have a qualified professional doing the company return too before you dump yourself in it even further.
Sorry if that seems harsh, but I'd be surprised if you'd even got close to the right figures on your return.
Ah yes of course. How silly of me not to assume you knew exactly what you were talking about.
Not sure
I'm not sure why laymen think they can come on here a few hours before the deadline, post half of the relevant information, ask us all to drop what we're doing so that we can give them free advice, which they can't be bothered to read properly, get the wrong end of the stick and complain that everyone's rude.
Such junk
If you are referring to mean-spirited abuse of those that have pointed out you are out of your depth, then you are quite correct. This is not an appropriate forum for such junk. his isn't really an appropriate forum for such junk
A little knowledge is a dangerous thing, and mistakes from lack of understanding can be costly. Seek help from someone who knows what they are doing, is often one of the most valuable pieces of advice going. If you can't handle getting it when you don't seem to know what you are doing, perhaps a free online forum is not the best platform for your queries.