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Balance of Charges

  • 06-11-2018 5:00pm
    #1
    crunchy62
    Registered Users, Registered Users 2 Posts: 159 ✭✭


    Hi, hope someone can help!

    In 2017 I closed my business and sold off equipment I no longer had use for.
    From my research so far it would seem that if I claimed capital allowances on this equipment then the issue of a payment of "Balance of Charges" is due. The charge per item sold would be the difference between the amount of capital allowances unclaimed and the amount the item was sold for.
    In my case some of this equipment was purchased over 20 years ago and the full allowance has been claimed meaning that a "balance of charge" would be due on the full amount the item was sold for.
    My accountant has claimed that I must pay this charge on every item sold. However I have disputed this as again my research indicates that the charge is only payable where the amount between the capital allowance and the sale amount exceeds €2000. As all items except one was sold for less than a difference of €2000 I assume I do not have to pay a charge on these items.
    Can anyone confirm if this is the case?

    Thanks


Comments

  • #2
    wiggle16
    Moderators, Society & Culture Moderators Posts: 3,022 Mod ✭✭✭✭wiggle16


    I could be wrong but I would have thought that for equipment that is over 20 years old or more there is no balancing charge to be brought against their sale.

    What kind of equipment did you sell?

    I would get a second opinion on that from an accountant familiar with your industry. I might be wrong, in fact I likely am, but it doesn't sound quite right to me and I would double check it to be sure.


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