Balancing Charges on Asset Disposals

Balancing charges arise when you dispose of an asset that previously received capital allowances. When the sale proceeds exceed the asset's tax written-down value (TWDV), HMRC requires you to add back the excess to your taxable profit for that year.

What Is a Balancing Charge?

When you sell or dispose of a capital asset:

• The TWDV is whatever remains in the pool after earlier allowances (often £0 if you claimed 100% AIA or FYA)
• If the sale proceeds exceed the TWDV, the difference is a balancing charge
• The balancing charge increases your taxable profit

Most common scenario: you claimed 100% AIA on a piece of equipment in year one (TWDV → £0), then sell it for £3,000 three years later. The full £3,000 is a balancing charge for the year of disposal.

How to Enter a Balancing Charge in TinyTax

In the Tax computation section, click Show ▾ next to the Balancing charges heading. This chevron sits just below the Capital allowances chevron:

You will see a row for each pool type. Enter the balancing charge amount in the row that matches the type of asset you disposed of — TinyTax maps each row to the correct CT600 box automatically.

Which Pool Row to Use

Asset type	Pool row to use	CT600 box
Most plant and machinery (equipment, vans, tools)	Main pool	Box 705
Integral features, long-life assets, higher-CO₂ cars	Special rate pool	Box 695
Zero-emission cars (100% FYA)	Zero-emission cars	Box 727\*
First Year Allowances — other (not zero-emission cars)	Others	Box 725

\*For accounting periods starting on or after 1 April 2025, HMRC no longer accepts Box 727 separately. TinyTax automatically re-routes zero-emission car balancing charges to the Others pool (Box 725) for those periods — you still enter the amount in the Zero-emission cars row, and the correct box is used behind the scenes.

CT600 Box Pairs — Balancing Charges vs Capital Allowances

Each pool has two CT600 boxes: one for allowances (deductions) and one for balancing charges (additions). The lower-numbered box in each pair is always the balancing charges box:

Pool	Balancing Charges box	Capital Allowances box
Special rate pool	Box 695	Box 700
Main pool	Box 705	Box 710
Others	Box 725	Box 730
Zero-emission cars	Box 727	Box 726

So if you claimed allowances for a main pool asset (Box 710 for WDA, or Box 690 for AIA), the balancing charge on disposal goes in Box 705 — not Box 710.

Box Numbers in TinyTax vs the Filed CT600

In TinyTax's Tax computation form:

• The Capital allowances chevron shows pool rows labelled 705, 695, 726, 725
• The Balancing charges chevron shows pool rows labelled 710, 700, 727, 730

On the filed CT600 (HMRC's numbering):

• Box 705 = Balancing charges, Main pool
• Box 710 = Capital allowances, Main pool
• Box 695 = Balancing charges, Special rate pool
• Box 700 = Capital allowances, Special rate pool

So if you entered your balancing charge in the Main pool row of the Balancing charges chevron (shown as Box 710 in TinyTax), your CT600 will correctly show it at Box 705. TinyTax handles this routing automatically.

Common Questions

Can I use the Annual Investment Allowance field for a balancing charge?

No — the AIA field is for deductions (reducing taxable profit). A balancing charge is an addition to taxable profit. Enter it in the Balancing charges chevron, not the AIA field.

What if my original claim was AIA (not WDA)?

It does not matter how you originally claimed the allowance. What matters is which pool the asset belongs to. Most AIA-claimed plant and machinery is a main pool asset — so the balancing charge goes in the Main pool row (Box 705). Special rate assets (integral features, higher-CO₂ cars) go in the Special rate pool row (Box 695).

What if the balancing charge comes from a pool of assets?

If the pool has a negative balance at year end (total disposal proceeds exceed the pool balance), the absolute value of that negative balance is your balancing charge. Enter it in the relevant pool row.

What About Box 215? I Cannot Find It in the Form

Box 215 on the CT600 is "Allowable Capital Losses" — it is used to offset capital losses against chargeable gains (Box 210). It is not relevant to capital allowances or asset disposals handled through the allowances system.

TinyTax does not expose Box 215 as a direct input. It applies only to companies with chargeable gains that also have capital losses to carry forward — a specialist scenario. For chargeable gains, see the Capital Gains and Disposals guide.

If you disposed of a capital allowances asset (plant, machinery, a van, etc.), use the Balancing charges chevron as described above. Box 215 is not relevant to that disposal.

Can I Use the "Other Adjustments" Field for a Balancing Charge?

No. The Other adjustments field (under Specialist adjustments) is for chargeable gains and other specialist tax adjustments. Balancing charges go in the Balancing charges chevron in the Capital Allowances section.

Using Other adjustments for a balancing charge would incorrectly label the entry and could cause confusion on the tax computation report.