Can anyone help please, I bought a van and offset wholly in that year 5 years ago. That van was then sold and a new one bought for 2.5k more than the old van was sold for.
Can I now depreciate the van rather than put the whole expense to this year and what do I do with the sale proceeds?
Thanks
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Replies (5)
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Sale proceeds are treated as profits in the year of sale.
Tell us more about your new van.
Why do you want to depreciate it ?
Are you on the cash basis? If so, why ?
Tax treatment depends on circumstances, any personal use adjustment re either van?
There is also possibly different treatment for accounts purposes and tax purposes.
This is an area where sometimes, depending upon total income etc, care ought to be taken to ensure reliefs/allowances are not wasted, doing tax on a DIY basis might not be the best approach,it could cost you money if you do not really know what you are doing, an accountant could accordingly be worthwhile.
Have you heard of capital allowances and balancing charges?
Amount of depreciation has no effect on your taxable profit.
Spend some of the sale proceeds hiring an accountant....you may be missing other important rules/deductions
