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S/trader with 2 businesses sharing equipment - cap' allow' claims

16/01/2018 14:51:14
Capital allowances advice requested: the two subject businesses fall under the same upper-level NACE classification (A), but under different lower NACE classifications within Group A.

1) Circumstance: Asset X is bought (£100) for Biz1 in Yr 1 - AIA claimed for full cost. In Year 2 , Asset X also brought into use for new Biz2 (say 50% use) and a Biz1 balance charge of £45 (= depreciated value of £90 x 50%) is brought into the Biz1 account. Equally, an asset value of £45 is placed in a Biz2 single pool.

Question: Having brought the item into part Biz2 use, am I restricted to claiming WDA on the £45 value now placed in the Biz2 single asset pool?


2) Circumstance: Asset Y purchased for Biz1 & personal use (say 50/50) in Yr 1 @ £15.0k - WDA claimed @ 8% x 50% (= £600). Written down value of £13.8k carried forward. In Yr 2 Asset Y also used for Biz2 and market value of Asset Y is £12.3k at time of Biz2 introduction - Yr 2 usage is 30% Biz1 / 30% Biz2 / 40% personal. Iis it acceptable to transfer a part interest to Biz2 at TWDV or do I have to use the market value for Biz2 introduction/use for Biz2 pooling purposes. If the latter ....

Question: Is the Yr 2 Biz1 WDA claim 8% x 30% of the WDV of £13.8k while the Yr 2 Biz2 claim needs to be 8% x 30% of the lower market value of £12.3k? [ In other words; in Yr 2, would Biz1 claim WDA of £13.8k x 8% x 30% (= £331) while Biz2 could only claim £12.3k x 8% x 30% (= £295) ]

This message was edited 3 times. Last update was at 18/01/2018 12:26:09

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S/trader with 2 businesses sharing equipment - cap' allow' claims

18/01/2018 13:20:40
Hi - thanks for your submission. The questions you have raised would need to be referred to a technical adviser.

Please follow this link to request a webchat https://www.gov.uk/government/organisations/hm-revenue-customs/contact/self-assessment

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