Wear and Tear/ Disposal Taxation Query

[Brian O'Brien]

Hi there. Will check out with Revenue most likely anyhow but they're a bit slow sometimes these days..
A couple of things:
If a business bought a van, and it got stolen before insured is it treated as a loss on disposal in Year 1?
With Wear and Tear being 12.5% and the business buys a load of assets that effectively only have a life of say 2 years. Claim 12.5% in Year 1 and treat as a disposal in Year 2 for the balance 87.5% (presuming no resale proceeds).
Thanks

 

[wantoknow]

As far as i know, If the van was not in use at the end of accounting period, the business can not claim capital allowance on it. Was the van in use at the end of accounting period?

 

[T McGibney]

If a business bought a van, and it got stolen before insured is it treated as a loss on disposal in Year 1?

If a van was never insured, that suggests it was never (at least legally) in use in the course of business and that capital allowances should not be claimed.

 

[Brian O'Brien]

The Van wasn't used. They believe the van was tracked, they imported it, and then stolen before they had a chance to insure let alone use it. They'd even paid the VRT.