Why is the 'profit on disposal of non-current asset' not in the corporation tax calculation?

Kelly_Harvey

is it non-assessable income or something?

And what about a loss of disposal? Any help appreciated :-)

CSan89

I believe it is due to capital allowances being given rather than depreciation.

crispy

Hi,
When calculating your Profits Chargable to Corporation Tax from your accounts the Profit on Disposal will be stripped out (along with other items - such as depreciation) to arrive at a Trading Profit Figure (for Tax purposes).

The Profit on Disposal will be included in your Corporation tax comp as a 'Chargable Gain' if you have have any allowable losses brought forward they may be set off against the gain. Please see below link which expains far better than I can

https://www.gov.uk/tax-when-your-company-sells-assets/work-out-a-chargeable-gain

Kelly_Harvey

Thank you both for your answers and the link :-)