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Balancing Charge / Balancing Allowance

  • Fellow PM.Dip
  • Practice Licence
  • 12 posts
  • # 119858

Hi. Hopeing someone can shed more light on this than I have gleemed from HMRC's website.

A client is selling his car....he has claimed back Capiltal Allowances to the value of 5650 over the last 3 years.

The purchase price was 13995 and the selling price is 7500

This leaves me with a balance of 845 as a balancing allowance.

as he isnt closing his business this cant be claimed against his profits so do I just roll this forwards and add it to the capital allowance claim of his next car?


My Calcs are as follows:

Sold - 7500 + Claimed in capital allowances 5650 = 13150 

Purchase price 13995 less 13150 = 845


Fingers crossed someone can help.

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