balancing allowance on stolen capital item

[dockingtrade]

Hi,

If you have a piece of equipment that you are getting capital allowance of 12.5% pa and that item is stolen on year 5, can you get a balancing allowance for the remaining 3 years as if it was scraped for 0 in year 5?.

IE
Year 5
TWDV = 5000
scrap (stolen) = 0

balancing allowance 5000 which can be written off ?

 

[jack2009]

is it not insured?

 

[Paddy199]

It must be in use at your year end to claim a capital allowance. So No to capital allowance.

However, you will be entitled to a balancing allowance, if you get any proceeds from insurance, this will want to be taken into account.

 

[dockingtrade]

It must be in use at your year end to claim a capital allowance. So No to capital allowance.

However, you will be entitled to a balancing allowance, if you get any proceeds from insurance, this will want to be taken into account.

thanks... yes im asking about the balancing allowance. He's having hassle with the insureance co. so wants to know ehere he stands on if he go zero. Something to do with the equipment not been in his premises when it was stolen. He would sometimes bring this equipement on site to external jobs so something there on where its kept.