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Gain on sale of asset - CT600

Gain on sale of asset - CT600

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Please forgive the basic question, as many of you know I have been on maternity leave and the old brain isn't what it used to be. And this is the first time I have come across this scenario in practice.

If someone could confirm the following is correct, I would be most grateful! Or if I have officially lost the plot, I'd love to know the right answer.

Client disposed of a motor vehicle asset for more than the purchase price (yes, I know, unusual!).

- The gain on disposal goes to the P&L and is added back in the tax comp.

- The purchase price only is added back to the capital allowances pool

- The excess is noted in the chargeable gains section of the CT600, box 16. Gain is indexed (that took me back a few years!). I'm using Taxfiler so it takes me through the whole disposal process.

Thanks so much and Merry Christmas.

Replies (5)

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By Steve Kesby
19th Dec 2015 15:32

What sort of motor vehicle was it?

Your first two bullets are correct. The third may or may not be.

See CG76906 and CG76907.

(yl dik Ut-author"> awspdth (yl db CG76907Cosemedbility-ct-listing="Gegy