Sorry in advance for asking what is probably a simple question. Feeling a bit brain dead at the moment.
Client is a musician.
He has used instruments which have always been the subject to full FYA / 100% AIA claims.
He has now sold some of them.
Some of the assets have been sold for more than their original cost so proceeds are deducted from the b/f pool UP TO the original cost but what about the tax treatment of the excess sale proceeds?
For example, one instrument cost £14,500 some 7 years ago when the FA rate was 50%. Half the cost was claimed FYA with the balance going into to pool and deprecated by WDA along with other gear.
The disposal proceeds of this one instrument were £18,750.
Any thoughts much appreciated.