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capital allowances on rental income....

yayatobe · 2017-01-31 14:13:30

What happens when items allowed for under capital allowances need to be replaced before they are fully claimed for? for example, a sofa cost is divided over the 8 years but after 6 years is replaced, what happens to the balance of the unclaimed capital allowance? A) Continue to claim for the old sofa for 2 more years but…

31-01-2017 2:13pm

#1

yayatobe

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What happens when items allowed for under capital allowances need to be replaced before they are fully claimed for?

for example, a sofa cost is divided over the 8 years but after 6 years is replaced, what happens to the balance of the unclaimed capital allowance?

A) Continue to claim for the old sofa for 2 more years but also claim for the new sofa at the same time

The balance of the value of the sofa is claimed as a loss and just claim for the new sofa

C) something else

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Comments

#2 31-01-2017 6:58pm

Lockedout2

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it's know as a balancing allowance

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#3 01-02-2017 3:05pm

Mr. Incognito

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There is a guide to rental income in the stickies

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#4 06-02-2017 10:16pm

yayatobe

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Mr. Incognito wrote: »

There is a guide to rental income in the stickies

Nice one, thanks!

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#5 07-02-2017 12:20pm

Penguin3029

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If a balancing charge arises, you might be able to defer it by reducing the base cost of the replacement asset (meaning smaller capital allowances on that). Up to you which you'd prefer though!

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