Self Employed full 42 - Allowances on sale or cessation of business use

If you sell or give away a business item, before you work out your allowances, deduct from the relevant pool:

• the amount you received for the sale
• the market value of the goods that you keep or give away

If you've claimed the full amount of Annual Investment Allowance (AIA) available for all of your expenditure, your pool balance will be nil. If you then sell or give away an item for which you have claimed AIA, you'll have a balancing charge.

If the business ceases, you can claim any balance left in the pool after you've deducted either the amount you sell the items for, or the market value if you keep them or give them away, as a balancing allowance instead of claiming Writing Down Allowance (WDA).

Note: If you claim the trading income allowance, you cannot deduct allowable expenses or simplified expenses, do not enter an amount here.