Capital allowances & costs of disposal

Capital allowances & costs of disposal

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If an asset is sold, then the net sale proceeds ie proceeds received less any costs of disposal are included in the capital allowance pool. If an asset is subject to CGT then these costs would also be taken into account.

However if a machine is scrapped and has no proceeds, what should be done with any costs of scrapping? Should these costs go to the general pool and WDAs claimed? But these costs have not been incurred on the provision of plant or machinery unlike, say, installation costs of the original asset which we would all expect to be treated as part of the cost of the asset and included in the general pool.

So can I reasonably treat these costs as a revenue expense?

All comments welcome.
Elizabeth

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