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buy and sell assets

08/01/2018 12:12:52
From : Bazjay
Hello All

Just sold two vehicles from my business and bought one vehicle to take there place,just a bit confused
over were this transaction will be entered on my tax return,AIA this area states that cars are not covered in this area
Just to make things clear I have been a sole trader for over thirty years but after I went semi retired four years ago I now fill
in my tax return myself hence problem.

Thanks

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Re:buy and sell assets

08/01/2018 16:07:40
Hi

Please see the attached link to the instructions on HMRC website which advise how to treat the disposal of an asset for capital allowances purposes.
https://www.gov.uk/capital-allowances-sell-asset
Kind regards

This message was edited 1 time. Last update was at 09/01/2018 08:53:24

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  • Catherine Newman
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Re:buy and sell assets

08/01/2018 17:07:46
If you buy a new vehicle, you are correct that cars do not count towards AIA. In the olden days the capital allowances for cars were straight forward. You need to know the amount of emissions and look up the rate for capital allowances online or a tax book. The claim is made on the same page as AIA but you have to put it in Other capital allowances (box 25 in the short version), 50 or 51 in the full version depending on the amount of capital allowances claimable (based on the emissions).
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buy and sell assets

30/04/2018 11:15:22
Hi Catherine

Thanks for your help,sorry its been a while ,but after your post I thought I had it clear,but now the time has arrived to fill in my tax form
the confusion has arrived again,the buying of the car not a problem in box 25,but how do i treat the selling of cars are they profit and shown in gross profit box 9 or in some other box ,by selling the cars I received a certain amount of money,this was far more then what I
can claim for buying the new car ie 18%,is this just straight forward profit and is taxable,if it helps the buying and selling of these vehicles involved amount less then £5000.
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Re:buy and sell assets

01/05/2018 11:23:56
Hi

If the remaining value at the point of sale of the car is less than what you sell the car for, you declare the difference as a balancing charge in box 26.

If the remaining value at the point of sale of the car is more than what you sell the car for, you claim the difference as a capital allowance in box 25.

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