»Ê¹ÚÌåÓýapp

This example shows how balancing adjustments are calculated (see EIM36680).

A salesman working from home ceases employment on 30 November 2009. Capital allowances had previously been claimed on the following items:

• an electric typewriter with a residual value brought forward at 6 April 2009 of £80 - on cessation of employment the typewriter was sold for £100, which is less than its original cost
• an answering machine with a residual value brought forward at 6 April 2009 of £50 - the salesman retains the machine for private use - its market value at cessation was £20
• an overhead projector with a residual value brought forward at 6 April 2009 of £72 - the projector was bought in the previous year for £120, but on cessation the taxpayer manages to sell it for £130

Both the typewriter and the answering machine were used 10 per cent for private purposes, but the projector was used wholly for business.

»Ê¹ÚÌåÓýapp balancing adjustments required are as follows.

-	(a)	(b)	(c)
-	Typewriter	Answering machine	Projector
2009 to 2010	£	£	£
Residual value brought forward	80	50	72
Disposal value at 30 November 2001 (see EIM36690)	100	20	130
Total	(20)	30	(58)

(a) gives rise to a balancing charge of £18 (£20 as above, less 10% private use)
(b) gives rise to a balancing allowance of £27 (£30 as above, less 10% private use)
(c) gives rise to balancing charge of £48 (although the difference above is £58, the charge is restricted by the amount that the disposal value exceeded the original cost - see EIM36680).