HELP!! bankruptcy hp repossession and capital allowances!!


Nov 12, 2011
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I am desperate for some advice. I am FMAAT MIP but this is out of my league! My brother in law went bankrupt on 13.01.11. His van was repossessed on 28.02.11. Capital allowances on van were b/f at £1490 (AIA restricted l/y as not needed). Balance on HP £8448. Van currently on market for £6995 after being sold on by HP company to a garage.

I do not know if I am supposed to put proceeds on the C/A and if so what amount? I have been advised the HP balance of £8448 by a former colleague. Another former colleague advised £5000 proceeds if selling now for £6995, But no proceeds have been received by my client! If proceeds go on, then I get a balancing charge, which bumps up his profit. (I know that the tax liability is w/o, but it will affect his Tax Credits).

As a seperate issue, I have missed the deadline for paper returns, but have now discovered that you cannot send a bankrupt return online! So I presume we will get £100 penalty, but as this is attached to the UTR and all liability is w/o due to bankruptcy, he will not actually have to paid the fine!

Any help or advice gratefully received.


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