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How can I write off a Capital Allowances Bal B/F

Client has balance b/f for capital allowances on a general pool but assets broken and not replaced

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Client has balance b/f for capital allowances (16K) on a general pool but assets are broken and will not replaced - there is no saleable or scrap value. 

 

Can the client claim the full balance in his current years tax return or does the balance remain being written down until below £1000.

If we can claim the full amount, how would we show this on their CT600?

 

Thanks

Replies (6)

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By johngroganjga
16th Nov 2021 15:00

I think that if ALL the assets are damaged and no longer in use the client can claim the whole pool balance as a balancing allowance.

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By jwgrogan
16th Nov 2021 16:13

No, I think if it's a general pool then there is no balancing adjustment until the trade stops or the pool shrinks to £1k and can be w/off in one go.

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Replying to jwgrogan:
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By Paul Crowley
16th Nov 2021 16:23

That is what I thought, given that I would not be able to tell IRIS how to fix it
We ceased the trade on an asset holding company specifically to get the balance relieved on a company vehicle

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Replying to jwgrogan:
By johngroganjga
16th Nov 2021 17:22

But if all the fixed assets are out of use and not being replaced, the trade surely must have stopped.

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Replying to johngroganjga:
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By Tax Dragon
16th Nov 2021 18:18

You'd think. But then you'd also think OP might've mentioned the cessation had it happened.

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paddle steamer
By DJKL
16th Nov 2021 16:27

"there is no saleable or scrap value."

In my experience with tangible assets there nearly always is a value, we have chaps dropping in all the time who will give us something for scrap metal. Right now we are selling out 30 years of accumulated crap and even that finds someone paying something.

The only stuff that is problematic, in my experience, is brown wood furniture that is veneered, even the most hideous piece of solid hardwood furniture can be sold for the wood.

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