Q. I am self-employed and have been claiming capital allowances on certain business...

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Q. I am self-employed and have been claiming capital allowances on certain business items. If I close the business and move into employment and continue to use the same assets for my work, can the transfer from one to the other be at the written down value, or will there be a balancing allowance at the date my business ends? 

A. Strictly, the open market value should be used for the transfer, so that balancing allowances or charges result. However, since employees can claim capital allowances for equipment they provide for use in their work and this will be a transfer between 'connected persons', you will be able to elect to use the tax written down value for the transfer instead.

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Added By: Sharon Worger on 28th Feb 2018 - 16:40
Last Updated: 28th Feb 2018 - 17:44

Number of Views: 473
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