I'm hoping I have this right but it comes up so rarely I'd welcome a second opinion.
My client has disposed of 2 substantial items of plant and machinery, one at a price well in excess of cost. Capital allowances were claimed. My understanding of the treatment of this is that:
Proceeds will be treated as reducing the general pool, but restricted to the original cost of the asset.
The excess over cost will be treated as a chargeable gain. The asset will not be a wasting asset as capital allowances will be claimed. Indexation allowance will be available.
I'd be grateful for any thoughts.