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?
- Jobs after completing ACCA 581 4
- Client having a go at me 953 16
- IR35 Confirmation 20 2
- Intermediaries and Personal Services Companies 261 7
- Tax Return Paid for but not submitted 240 3
- The Budget dividend problem 4,748 66
- Related Party Disclosure for Director who resigned in year 135 4
- HMRC arbitrarily amending tax returns for higher rate child benefit charge 452 2
- Schedule A losses 837 14
- VAT and selling on Amazon 315 4
- Companies House 290 7
- Losses carry forward to self employed 663 11
- nevermind 409 3
- Car used both in a partnership and sole trader business - how to claim capital allowances? 237 1
- Payroll Manager - tax code for starter declaration 'C' 278 2
- Charging for Blank Payslips? 242 4
- Going concern 147 2
- Terminal Loss Claim 110 3
- Just another average day trying to deal with HMRC 2,152 29
- What would you do? 1,467 8
- Any knowledge of salesorder.com 456
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 439
- Electric Car 368
- S222 Charge 290
- Corporation tax penalties and fines on the CT600 273
- IP trans to holding company 225
- Simple Partnership Agreement Template 177
- Career advice needed regarding accouting systems analysis 176
- Tax on donations for the beneficiary 167
- VT final accounts - investment properties 160