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

Kelly_Harvey Registered Posts: 2
is it non-assessable income or something?

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


  • CSan89
    CSan89 MAAT Posts: 207
    I believe it is due to capital allowances being given rather than depreciation.
    AAT Level 2&3 - 2016
    AAT Level 4 - 2017
    Personal Tax, Business Tax and External Auditing

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  • crispy
    crispy Registered Posts: 465 Dedicated contributor 🌟 🐵 🌟
    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 :)

  • Kelly_Harvey
    Kelly_Harvey Registered Posts: 2
    Thank you both for your answers and the link :-)
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