retention Of Accounting Records

retention Of Accounting Records

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My client incurred CGT enhancement expenditure in 1993 to a capital asset. The asset was sold in 2002/03.
HMRC are enquiring into the sale and are asking for sight of the receipts for the enhancement expense.
Details of the expnses were extracted from the books in 1993 and scheduled on the permanent section of the file for future reference. The actual vouchers along with the accounting records were destroyed in 2002. ie well after the statutory limit.
I can see the Inspectors wish to verify the expense, however, is the onus on the taxpayer to prove the expense or on the Inspector to disprove it?
Vaughan Blake

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By deanshepherd
14th Jul 2005 08:39


Should keep the receipts..


The 'effective date' refers to documentation supporting information included on the tax return so it is the date of the tax return that counts.

However, if you have a detailed schedule of the work undertaken then you should be able to persuade the inspector to accept it. Stick to your guns.


Dean



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