What are the deemed proceeds?

Hi Everybody,

I'm having a 'blonde' moment!!

I have a client who is a private hire driver and he has been claiming capital allowances on his car. At the beginning of the 2011/12 tax year has a WDV of around £6000.

During the year he gave the car to his girlfriend (and transferred logbook etc.) for free and rented a car for the remainder of the year.

Obviously there is a disposal to be dealt with, but do I claim the remaining balancing allowance of £6,000 seeing as the proceeds are nil?

Or is there a problem due to the car being given to his girlfriend? My gut feeling is that I need to deem the proceeds at market value or WDV???

Any answers would be appreciated.

Thanks in advance

 

 

Comments
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Market value

Phil Rees |
Phil Rees's picture

Thanks

rjh1983 |

Agree with Phil, unless...

Steve Kesby |
Steve Kesby's picture

Sole Trader

rjh1983 |

thought that was implicit

Phil Rees |
Phil Rees's picture