I know that 'private cars' are exempt form cgt.
In this case a company has sold a sports car (owned approx 10 years) at a considerable gain, the car never been used in business activities - expect kept under a sheet in a lock up.
My question is could this be classed as a sale of an investment and would CGT be due on gain?
Any help greatly appreciated.
Replies (5)
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Sale of Car - CGT?
WAS THE CAR CAPITALISED AND SHOWN ON BALANCE SHEET.
OTHER ISSUES
WAS IT INCLUDED ON P11D
WAS THE CAPITAL ALLOWANCE CLAIMED
Sale of Car - CGT?
I PRESUME THAT YOU WILL BE SHOWING PROFIT ON DISPOSAL OF ASSETS. WHICH IS DISALLOWED FOR TAX COMPUTATION.
IF YOU HAVE CLAIMED CAPITAL ALLOWANCE THEN BALANCING CHARGE WOULD BE APPLICABLE.
I WOULD NOT INCLUDE THIS AS CAPITAL GAINS.
P11d issue
Definitely not CGT - it's a simple asset disposal
Regarding the P11d benefit though, you said never used for business yet no P11d completed - hmmmm very dubious