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Sam, Accountant
Category: UK Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
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Dear XXXXX I have a client who has sold equipment for £500.

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I have a client who has sold equipment for £500. Do I simply deduct this from the fixed asset register or do I need to find out the cost and calculate the profit /loss on the disposal to be entered in the P& L account?

Thank you


Hi Steve



Thanks for your question and asking for me


No you need to establish the full value position - so either this equipment has been subject to annual investment allowance - (so 100% relief claimed on its value in the year of acquisition) OR capital allowances were applied (such as in a general pool)

But you need to know

1) What the purchase price was

2) How much capital allowances are claimed

3) To establish the value still to carried forward from the last full tax year end

4) To see whether you have a further capital allowance to claim or a balancing charge to add back into the profits.







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