Equipment I already own.

Nednats

I understand I can get tax relief for equipment bought for my business. What about equipment I already own? What if I bought something prior to owning a business but now use it 100% for business use?

acs_2

if you still have the receipts, I believe you can still put them through your books as business expenses so long as they don't date back further than 6 months.

Hopefully someone will be able to confirm this?

Nednats

acs wrote: »

if you still have the receipts, I believe you can still put them through your books as business expenses so long as they don't date back further than 6 months.

Hopefully someone will be able to confirm this?

The some of equipment in question is years old.
The equipment is now the business. It an asset and an investment.

I was wondering if there was anything I could do as the equipment worth a considerable amount and I would not be making any money if it wasn't for this equipment.

chrismac1

Pre-trading expenditure can go back 7 years in fact not 6 months.

http://www.hmrc.gov.uk/manuals/bimmanual/bim46351.htm

Whether you claim 100% of the cost is, on the basis of your post, somewhat doubtful as presumably there has already been quite a bit of non-business use.

Nednats

chrismac1 wrote: »

Pre-trading expenditure can go back 7 years in fact not 6 months.

http://www.hmrc.gov.uk/manuals/bimmanual/bim46351.htm

Whether you claim 100% of the cost is, on the basis of your post, somewhat doubtful as presumably there has already been quite a bit of non-business use.

Thank you.

Also equipment is no longer worth what I paid for it.
I was thinking of finding the price of what it would cost second hand and using this figure. Or am i thinking about this in the wrong way?

jimmo

The pre trading rule does not apply in this case because the expenditure is not of a revenue nature. It is capital expenditure.

You are therefore correct to introduce the equipment at open market value at the date you started using it in the business.

http://www.hmrc.gov.uk/manuals/camanual/CA23030.htm

Tinker009

You will not be able to claim 100% AIA on capital assets brought into the business, but you will be able to claim the 18% WDA.

Nednats

Tinker009 wrote: »

You will not be able to claim 100% AIA on capital assets brought into the business, but you will be able to claim the 18% WDA.

AIA or WDA can anyone confirm?

Nednats

I have done a bit of research by searching the net but I keep find conflicting arguments for if is AIA or WDA

jimmo

I am afraid its WDA.

I retired from HMRC before AIA was introduced so have no professional experience and hoped someone else who has would join in.

However general exclusion 5 in the following link seems to scupper your chances of claiming AIA.

http://www.hmrc.gov.uk/manuals/camanual/CA23084.htm