It’s true I didn’t claim it as an expense but, I have claimed the trading allowance which is £1000. Would that trading allowance be associated with the website in anyway?
There is a part dedicated for cessation of trade on the next page which only mentions trading stock. If that is the case what happens to asset purchased and paid for in instalment every year and every year an expense is claimed for what has been paid. What if there are instalment left to pay on the asset after the cessation and were not claimed, do you still bring a cash basis receipt based on the whole market value of the assset?
Imagine you paid 1000£/year for an asset in instalment in year 2 you ceased trading, all you paid is 1000£ from the first year and from year 2 you started paying it from your own money and obviously you didnt claim any expense what would your cash receipt be in that case ?
Yes but that’s while he is trading and stopped using the equipment in his trade which is different than when he ceases trading completely.
gainsborough wrote:
Kol-R, see BIM70020 re deemed proceeds "a person must bring into account a cash basis receipt equal to the market value of the asset when the person ceases to use it for the purposes of the trade".
My answers
It’s true I didn’t claim it as an expense but, I have claimed the trading allowance which is £1000. Would that trading allowance be associated with the website in anyway?
Thanks
There is a part dedicated for cessation of trade on the next page which only mentions trading stock. If that is the case what happens to asset purchased and paid for in instalment every year and every year an expense is claimed for what has been paid. What if there are instalment left to pay on the asset after the cessation and were not claimed, do you still bring a cash basis receipt based on the whole market value of the assset?
Imagine you paid 1000£/year for an asset in instalment in year 2 you ceased trading, all you paid is 1000£ from the first year and from year 2 you started paying it from your own money and obviously you didnt claim any expense what would your cash receipt be in that case ?
Yes but that’s while he is trading and stopped using the equipment in his trade which is different than when he ceases trading completely.