Capital Allowance on previously owned tools/machinery

[katelee17]

Hi, my partner set up as a self employed blacksmith in 2009. He was employed for ten years prior to this. Over the last five years or so he has acquired/bought/made/renovated a lot of the tools and machinery he now uses for his business - probably about £5-10k worth. (Blacksmithing requires a lot of old fashioned tooling and machinery) But these are not all receipted items.

Is there anyway to account for these items to off-set against tax? And if so how would I go about it?

I am aware that I may be able to class them as 'capital introduced' and then allow WDA of 20% for this chargeable period (10/11), but would this just be accounted for along with his other expenses for the period?

Any advice would be much appreciated!

[Adrian44]

Hi
I assume that you have found the answer your looking for but here is a quick answer.

These assets/tools etc repaired and brought into use in your partner's business should be introduced at their open market value i.e. 5-10k. I note that you have little in the way of receipts so my advice catalogue what equipment you are bringing in with pictures and an estimate of the value of each item. If required this data should stand you in good stead.

WDA @ 100% should be avaliable using AIA if avaliable, if not as you state WDA @ 20%.

Adrian