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Capital allowances balancing charge
TheGreenFrog
Posts: 376 Forumite
in Cutting tax
If you claim capital allowances, but have a private use element (taken into account when the capital allowances were claimed), what happens when you sell an item? For example if you have an asset which cost £100 and claim £100 capital allowances less £20 private use - your pool shows £0. But then you sell the asset for £50 - is the balancing charge £50 or do you reduce it to take account of personal use (i.e. balancing charge of £40)? Have tried to find the answer without success.
0
Comments
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£50 less personal use. £40 is your answer - same principle applies!2
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Thanks @[Deleted User].0
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