Loss on sale of vehicle for sole trader

jow774
jow774 Registered Posts: 465 Dedicated contributor ? ? ?
Client has sold a vehicle for scrap for £169 which cost £600 in the previous year. The vehicle is a van used solely for business. Do I claim loss on sale against income? Im a bit unsure as looking at his previous accounts (drawn up by other accountant) it looks like he has brought and sold a van each year?

Just to add he is insisting that I claim it.

Comments

  • K H
    K H Registered Posts: 81 Regular contributor ⭐ ? ⭐
    I assume that in the year it was bought the previous accountant claimed 100% AIA in which case for tax it was written down to zero and the £169 would be treated as a balancing charge for CA's.

    In the P&L account the loss on sale would be shown as an expense and added back for tax.

    K H
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    K H wrote: »
    I assume that in the year it was bought the previous accountant claimed 100% AIA in which case for tax it was written down to zero and the £169 would be treated as a balancing charge for CA's.

    In the P&L account the loss on sale would be shown as an expense and added back for tax.

    K H

    Yep, this.

    If he only paid £600 then it's quite possible his vans only last a year each!
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