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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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I bought a transit van ex vat in January 2013

Resolved Question:

Hi
I bought a transit van for 15000 ex vat in January 2013 and wrote the whole amount off in the tax year April 2012 to 2013 under the capital allowance scheme. We are a non limited partnership with two partners. I now wish to sell the van in this tax year Apr2015-Apr2016 for £6000 ex VAT to a private non VAT registered individual and will be charging them £7200
We will have made a gain of £6000. Is this a capital gain or income? If it is a capital gain do I have to pay tax on it or declare it as it is under the capital gain yearly allowance for one person?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question..You have sold a van whereby you had claimed capital allowances in full in earlier years.When you file your tax return for 2015-16, you will show it as balancing charge (as you have disposed of an item for more than its value for tax purposes) under tax allowances for vehicles and equipment (capital allowances) within your supplementary pages SA103s or SA103f.This is not a capital gain for CGT purposes but a profit on sale of asset within accounts for income tax purposes. I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
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Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.
Best wishes.

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