A balancing allowance is a tax deduction available when you sell or dispose of a business asset for less than its remaining tax value. It reduces your taxable profits by the difference between the sale proceeds and the asset's written-down value. This applies when an asset is sold, scrapped, or no longer used in the business. Claiming a balancing allowance helps offset the loss on the asset and reduce your tax liability. Apex Accountants can guide you through claiming balancing allowances and ensure compliance.
