Believe me, I tried googling. But couldn't find anything specific enough for my particular query. This question was a last resort, as it always is, because I know the sort of comments that often appear, amongst the many helpful ones.
Thanks, both of you, for your really helpful points. I'm going to leave the capital gain out of the equation for now, and just include the balancing charge. I am going to do some further research now I have your reference points to guide me better. If I happen to discover anything different to what you have concluded, I'll let you know! Thank you again, I appreciate your help.
Thank you Jane and Paul. People don't really stop to consider what they write, and the impact it will have. I've been a chartered accountant for 25 years, in practice for 13, and I still learn something new almost every day. I always try to do the best for my clients, and the right thing, and I have lots of clients who are very happy with my work. Which is more than I can say for a lot of accountants - I've seen loads of lazy and incorrect work when taking on new clients who have previously been with other accountants. I think I have a pretty thick skin, but that comment kept me awake for quite a few hours last night, trying to figure out what I'd said that was so wrong. Not particularly helpful saying something like that, but not telling me what they actually think is wrong. It's not always easy to find an answer to a very uncommon situation, especially when you don't have any colleagues. Anyway, I appreciate your comments.
Thank you. I've had a look at that, but from what I've read, that exemption disappears if the car is brought into the business by claiming capital allowances on it. Here's a couple of extracts from an admittedly not necessarily trustworthy website, but I've read it elsewhere and interpreted the HMRC manuals in the same way:
When do I have to pay tax on the sale of a business vehicle?
In theory, you'd have to pay corporation tax (or capital gains tax if you're a sole trader and use your car for business travel) if you sell the car for more than you bought it.
If you're a sole trader and you're selling a business vehicle, it's highly unlikely that you'll have to pay capital gains tax. The thought behind this is because you most probably won't make a profit (although, in my client's instance, he did make a profit).
However, you may have to pay more income tax if the sale price is higher than your writing down allowances.
My answers
Thank you very much for taking the time to reply, I appreciate your help!
Thank you very much for taking the time to reply, I will go with section 263.
Believe me, I tried googling. But couldn't find anything specific enough for my particular query. This question was a last resort, as it always is, because I know the sort of comments that often appear, amongst the many helpful ones.
Thank you Cat's whiskers - I appreciate your offer and will bear it in mind, please feel free to do the same to me!
Thanks, both of you, for your really helpful points. I'm going to leave the capital gain out of the equation for now, and just include the balancing charge. I am going to do some further research now I have your reference points to guide me better. If I happen to discover anything different to what you have concluded, I'll let you know! Thank you again, I appreciate your help.
I have no worries on the AML - his business does very well, he has plenty of money and he really loves fancy cars.
I'm pretty sure you are allowed to claim CAs on cars you use in your business though...
Thank you Jane and Paul. People don't really stop to consider what they write, and the impact it will have. I've been a chartered accountant for 25 years, in practice for 13, and I still learn something new almost every day. I always try to do the best for my clients, and the right thing, and I have lots of clients who are very happy with my work. Which is more than I can say for a lot of accountants - I've seen loads of lazy and incorrect work when taking on new clients who have previously been with other accountants. I think I have a pretty thick skin, but that comment kept me awake for quite a few hours last night, trying to figure out what I'd said that was so wrong. Not particularly helpful saying something like that, but not telling me what they actually think is wrong. It's not always easy to find an answer to a very uncommon situation, especially when you don't have any colleagues. Anyway, I appreciate your comments.
Yes, this reads to me like the business portion of the gain is taxable.
https://www.legislation.gov.uk/ukpga/1992/12/section/45/enacted
Yes, this reads to me like the business portion of the gain is taxable.
https://www.legislation.gov.uk/ukpga/1992/12/section/45/enacted
Thank you. I've had a look at that, but from what I've read, that exemption disappears if the car is brought into the business by claiming capital allowances on it. Here's a couple of extracts from an admittedly not necessarily trustworthy website, but I've read it elsewhere and interpreted the HMRC manuals in the same way:
When do I have to pay tax on the sale of a business vehicle?
In theory, you'd have to pay corporation tax (or capital gains tax if you're a sole trader and use your car for business travel) if you sell the car for more than you bought it.
If you're a sole trader and you're selling a business vehicle, it's highly unlikely that you'll have to pay capital gains tax. The thought behind this is because you most probably won't make a profit (although, in my client's instance, he did make a profit).
However, you may have to pay more income tax if the sale price is higher than your writing down allowances.
https://mileiq.com/blog-en-gb/selling-business-vehicle-tax-issues-uk