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Trf of asset at Market Value - Capital Allowances

Sole trader transitioning from employment to self employment around July 20 (first Ye 31.3.21)

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Client commenced trading 07/20 pending redundnacy end 08/20

She had personal assets which are now 'transferred' part of business.  Usual office set up assets - desk, laptop, printer etc.  Simply trf in at market value and claim 18% (pro rata for July 20 - Apr 21) at 18%? And reduce for any personal use element as applicable.

In additon, and getting to point,  there is a Motor Vehicle - Market Value est £14,000.  Intention is to trf at July 20, claim capital allowances July 20 - 31.3.21, pro rata for persoanl use. 

Question re Car - is she only able to claim capital allowances at special rate of 6%?  as co2 at 115g/km and Car bought between April 2018 and April 2021? 

Thank you for your help in advance

 

 

Replies (4)

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RLI
By lionofludesch
14th Jan 2022 14:39

What's the market value of these assets ? Is small pools allowance a possibility?

"You can claim the full amount if the balance in your main or special rate pool is £1,000 or less before you work out your allowance."

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By Hugo Fair
14th Jan 2022 15:17

Not really my area ... but when OP says 'personal assets which are now 'transferred' part of business', what transaction resulted in those transfers?
AFAIK the basic premise of CA is that it is applied to assets 'purchased' by the business (as well as being for use by the business).

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Replying to Hugo Fair:
RLI
By lionofludesch
14th Jan 2022 15:58

Hugo Fair wrote:

Not really my area ... but when OP says 'personal assets which are now 'transferred' part of business', what transaction resulted in those transfers?
AFAIK the basic premise of CA is that it is applied to assets 'purchased' by the business (as well as being for use by the business).

Nothing to see here, Hugo. She doesn't have to start the business before she buys the asset.

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By jrk
14th Jan 2022 15:37

Thank you lionofludesch,
Indeed - she will be able to avail of small pool allowance - MV just below the £1k.

Thanks also Hugo Fair.
Her commencement of trading as sole trader - "trf" of assets to utilise for the benefit of her new business. Market value used.

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