The non incorporated business is ceasing but the assets are being transferred to a Ltd company so an election has been made to claim capital allowances instead of balancing allowances/charges, and WDV transferred to LTD company.
First year allowances are not available in the year of cessation. There is a way round this, but you would need to create a short accounting period in the sole trade first - ie if your normal year end is 31 March and the transfer is due to take place on that date, you would need to complete one set of accounts to an earlier date - say the eleven months to 28 Feb - and claim FYAs in full for that period (FYAs do not have to be time-apportioned in respect of the number of months in the accounting period).
You then also have to complete a one month set of accounts (1 Mar - 31 Mar) on which you can only claim 1/12 of the normal rate of capital allowances, which isn`t worth much!
It isn`t difficult to do, but you need to get detailed advice based on your circumstances, as the dates of claims etc are important! |
