Writing down allowances


B

b

Hi, could some one advise please,

My work van blew up n was scrapped in january 2009.
Am I able to claim, Writing down allowances, (now 20%) on the van for the
April to January, period ? Am I able to carry forward any remaining
writing down allowance on the scrapped van to, 2009/2010 ?

I bought another works van in January 2009, and intend to claim
the new, 100% Annual investment allowance.

Many thanks
Brian
 
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R

Ronald Raygun

b said:
My work van blew up n was scrapped in january 2009.
Am I able to claim, Writing down allowances, (now 20%) on the van for the
April to January, period ?
The usual procedure would be to claim the residual written down value
as a balancing allowance. If the WDV you carried forward to 2008-9
was £X, then you would claim 20% of £X as a WDA for 2008-9, and then if
you had *sold* the van during the year, for £Y, and assuming that Y is
smaller than 80% of X, there would be a balancing allowance to claim,
equal to the difference (obviously if Y were bigger than 80% of X, this
balancing allowance would be negative, and called a balancing charge).

As you scrapped the van, this would be equivalent to a sale where Y=0,
so you would claim the full 80% of £X as a balancing allowance, in
addition to 20% of £X as a writing down allowance. It may be simpler
not to bother with the WDA and just claim 100% of £X as a balancing
allowance.
Am I able to carry forward any remaining
writing down allowance on the scrapped van to, 2009/2010 ?
No.
 
B

b

Many thanks,
I think that claiming 100% as a balancing allowance is the best solution.
Thanks again
Brian
 
M

Martin

b said:
Many thanks,
I think that claiming 100% as a balancing allowance is the best solution.
Thanks again
Brian
I think you'll find you can't do this - unless your old van was in a single
asset pool - i.e. you had some private use of the van, and dutifully
disclaimed some of the WDAs each year.

Otherwise, you can only claim 20% pa of the balance (unless and until the
total pool, after applying AIA to new acquisitions, is within the small
pools limit of £1k.)
 
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B

b

Thanks Martin,
I will look into that,
Brian
Martin said:
I think you'll find you can't do this - unless your old van was in a
single asset pool - i.e. you had some private use of the van, and
dutifully disclaimed some of the WDAs each year.

Otherwise, you can only claim 20% pa of the balance (unless and until the
total pool, after applying AIA to new acquisitions, is within the small
pools limit of £1k.)
 

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