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Sale of Car - CGT?

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.

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By Anonymous
06th Oct 2009 11:47

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

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06th Oct 2009 11:53

.

Yes the car was capitalised

Never featured on a P11d form though  -

not shown as an investment held in the accounts - im informed was used lightly in a pool car capacity

 

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By Anonymous
06th Oct 2009 12:02

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.

 

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06th Oct 2009 12:24

thanks very much for your help

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By occca
06th Oct 2009 12:41

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

 

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