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Respected Tax Tutor,
Sir i just needed to know if net capital allowances given (when a wasting chattel that qualifies for Capital allowances is sold at a loss) is same as balancing allowance?
P.S.- Hope you are in good health sir, am worried because you haven’t been responding for a while now.
Regards,
Hi Agnes I am relieved to say that although I am someway short of 100% I am a lot better than I was for which I am very grateful – and hence have returned to ask the tutor – but thank you so much for your concern.
The only assets qualifying for capital allowances for which a balancing allowance is computed upon the sale of the asset is a NON POOL asset – assets with private use by the proprietor of the business or short life asset – irrespective of whether it is a wasting chattel.
If an asset is a wasting chattel then the sale would be exempt for capital gains purposes.
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