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Question:
Joe has been in business for many years preparing accounts to 5 April each year. The tax written down value of his main pool at 6 April 2019 was £12,000. Joe sold machinery on 10 June 2019 for £11,900 which had originally cost £11,600. He made no acquisitions during the year ended 5 April 2020. What is the maximum capital allowance that Joe can claim for the period of account to 5 April 2020?
The answer is £400 and the working is taking the TWDV b/f £12,000 minus the disposal (limit to cost) £11,600. Why is the disposal is limit to cost? Isn’t is supposed to minus the proceeds which is £11,900?
You take the lower off the disposal proceeds or original cost when it comes to disposal mate
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