Cessations of trade
You'll learn what happens to capital allowances when a business ceases to trade, including how to handle asset disposals and calculate balancing allowances or charges.
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In this lesson
- 0:00 Capital allowances: cessation of trade
- 0:08 Revising taxation material and updates
- 1:14 Cessation of trade: assets and allowances
- 1:59 Balancing allowances and balancing charges
- 3:08 Structures and buildings allowance treatment
- 3:22 Computing balancing allowance or charge
- 4:00 Proceeds limited to original cost rule
About this lesson
This lesson covers the key computational steps for the year of cessation, why no standard allowances apply in that year, and the critical rule that disposal proceeds cannot exceed original cost. Essential for ATX and understanding how to correctly close down a company's capital allowances pool.
Duration: 4m
Transcript
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