A Life on the Ocean Waves!

A Life on the Ocean Waves!

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Boat used in sole trade business for 10 years at 80% business, 20% private use

Last 2 years (as business is winding down) 20% business, 80% private use.

When boat sold at yr 12, will balancing charges be based on 20% business use or weighted

average of entire period ie 10 yrs x 80%, + 2 yrs x 20% = 70% business use?

Many thanks for any suggestions.

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By Steve Kesby
05th Mar 2014 11:52

What's the value of the boat?

Your calculation is correct (see CA27005), provided that the market value of the boat at the end of year 10 didn't exceed the balance in the boat's single asset pool by £1million. If it did you have a deemed disposal and reacquisition at market value at the end of year 10 (see CA27300).

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