Capital allowances and sold items

15/05/2019 06:27:16
Im not sure if this is the right forum to post this question but on my accounts I have always had capital allowances for my vehicle which obviously depreciate in value each year. If I trade my vehicle in but get less than it's written down value how do I show this?

For example
Wdv vehicle 2018 £2500
Addition of new vehicle £6500
Subtotal £9000
Disposal (trade in amount for old) £500

Re:Capital allowances and sold items

15/05/2019 08:12:30

Please refer to the HS252 under the heading "Disposals" and this will confirm the action that you need to take when you dispose of the van.

The helpsheet will also provide you with an example which you can use to assist you with the self employment page entries.

Capital allowances and balancing charges: HS252 Self Assessment helpsheet

If you sell an item, in your case the van deduct the sale proceeds or the market value from the balance of expenditure of the appropriate pool and if the proceeds or value is less than the pool value or the cost of the van then this is called a balancing allowance and you will make the entry on the self employment page under the heading "Tax allowances for vehicles and equipment (capital allowances).

If you refer to the Self Employed notes this will also assist you with the completion of the form.

Please refer to the following link:

Self Assessment: self-employment (short) (SA103S)