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
Replies (5)
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Market value
He has withdrawn the car from the business and this can only be done at market value. Google "Parkers" for a guide to market value.
Agree with Phil, unless...
... he operates as a limited company. In that case, the proceeds are nil for the CAs comp, but there's a BIK on the client for the market value transferred.