CAs on partnership cessation due to death
Husband and wife partnership. Substantial expenses incurred on equipment and also integral F&F in an extension to business premises. Wife dies half way through year.
I've done a single set of accounts for full year, which I've then apportioned between the periods - first half goes on partnership tax return and last half goes on personal tax return of husband on self employed pages. Fair enough so far.
But what about capital allowances? Presumably I can't claim anything for the first half year seeing it is a cessation of the partnership. Then I claim CAs in second half for sole trader having brought in WDV of asset pools. But for the second half, as it's a six month period, the rates/allowances are pro-rata'd so I can't claim full allowances. Is this right?
Also, what about AIA on assets bought in first half? I was hoping to bring in the purchases on day 1 of the new sole trader business and claim full AIA, effectively as pre-trading expenditure, but is that acceptable?
The way I see things, is that the client is going to be disadvantaged further in terms of tax because of the death of his wife due to losing some capital allowance claims? Surely this can't be right?
- Auto Enrolment & Moneysoft 533 4
- Wrong career 89 5
- Small employers paying people when sick thanks alot! 2,847 28
- Adjusting over-provision of Corporation Tax in previous year 177 5
- Newsletter 234 5
- RTI Filing 1,754 22
- Would this save hours of your time? 87 1
- Fee's for P11D's 298 5
- Agent with HMRC 238 10
- Quarterly PAYE 231 7
- Producing graphical KPI's etc 50 1
- reporting salary? 172 3
- Payroll software : RTI submissions 324 16
- CGT on Inherited Property 272 2
- Employment Allowance related companies 103 3
- Value pricing 589 19
- One man Company and closing payroll scheme as none paid 391 1
- Childcare Vouchers 175 3
- Audit Report Query 189 5
- Coming in from the cold 227 2
- Residential Property Purchase Above £750K 771
- Using Sage with Sofa Categories 524
- Does anyone have an unwanted ICAEW wooden plaque? 392
- Goods shipped inter EU and VAT Reporting 276
- Non-Resident Director - UK Tax Position? 218
- Sage 200 and Access Dimensions reviews 217
- Director Loan account operation 207
- transferring simply accounting 2010 from xp to windows 7 205
- Free Tax Legislation? 180
- vat return 171