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markhewitt

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  1. Correct. You could also charge the company interest on the loan. You do have a £1,000 allowance to play with. The value cannot just be priced at any level. You or your accountant will need to come up with a valuation report to justify that level and it would be better to get HMRC clearance.
  2. Starting with the accounts, obviously the profit on the disposal will go to the profit and loss account. You will need to make the following journals:- 1. Dr Bank x Cr Profit/Loss On Disposal Of Fixed Assets x Being disposal proceeds 2. Dr Depreciation on Disposed Assets x Cr Profit/Loss On Disposal Of Fixed Assets x Being depreciation on disposed asset (if any) 3. Dr Profit/Loss On Disposal of Fixed Assets x Cr Cost - Disposal x Being cost on disposed asset I have assumed that there is no revaluation reserve. With regards to tax, there is no capital gains tax chargeable. Instead, you would write back the profit/loss and treat the item as a chargeable gain. This would be calculated as follows:- Sales Proceeds (less selling costs) Less: Original Cost (less purchases expenses) Less: Indexation Allowance on cost (original date of purchase up to 31 December 2017) Less: Improvements Less: Indexation Allowance on improvements (original date of improvement up to 31 December 2017)
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