STIste

Especially AFTER calling the helpline, their advice seems to totally contradict the leaflet you get & I was passed to 2 different peeps who I'm sure didn't really know what they were talking about!!!
The dilemma revolves around my cars used in the business & their capital allowances/balancing charges.
Car A, is valued at £12000+ & owned for all of tax period & with a % business use so no problems, easy to work out.
My complication starts with car b.
This was valued at £4000 when I started the business in 2003 so had 25% capital allowance last year x % business use. Fine so far.
Car value was brought forward to this tax period at £3k, it was sold mid March 2005 (so 2 weeks before the end of the tax year) for £2250.
The replacement vehicle bought 17/3/05 cost £12100.
The guy at IR reckoned I had to claim capital allowance of £3000 x % business use for the new car & put a balancing charge of £750 against the sold vehicle, but that seems far too simplistic.
Any accountants out there who can give some pointers?

2000TLondon

Don't over complicate it, go with the advice from the IR guy. If it's wrong, they'll have you correct it. They're generally not going to fine you if you are co-operative.

STIste

Thanks, but I would like reassurance still.

Newbie123

Yes,

Capital allowance of £3000 x business use for the new car worth over £12,000.

But for the old car there will be a further balancing allowance of £750 x business use. as you sold the vehicle for less than it's tax value.