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SOLE TRADER CAPITAL LOSSES

A sole trader owns a taxi business.  He has 7 vehicles which are rented to drivers.  Following an accident, one of the vehicles has been written off and disposed of by his insurers.  At the time of write-off the vehicle has a WDV of £7740.00  Can I treat this as a loss against his trading income?  I appreciate your advice.

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By neileg
27th Jan 2011 14:14

Treat as sold

Treat this as a sale with the sale price being the insurance proceeds.

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27th Jan 2011 14:46

Perfect! Thank you

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