AIA and balancing charges when ceasing being a sole trader

mj73

Hi All,

Please can anyone confirm where you:
- bought a laptop for use in your business and for some personal use;
- claimed the business use percentage of the cost of the laptop in full as AIA in the tax year you bought it, and therefore have not claimed WDA on it since;
- cease being a sole trader in a future tax year and keep the laptop to continue to use for personal use;

*Does keeping the laptop count as a 'disposal'?
*Is there now any balancing charge due on that laptop on ceasing the business?
*If yes, do you work out the current market value of the laptop and record the % of that value relating to the business use as a balancing charge?
*Where do you record this on the self assessment forms?

Any replies greatly appreciated, thank you.

Pennywise

Yes, yes and yes. The disposal value is shown as an asset sale in the capital allowances section which triggers a balancing charge being the business proportion. If you claimed 60% of the cost as AIA then your balancing charge will be 60% of the value upon cessation.