Capital allowance- disposal of assets

SophieChall Registered Posts: 5
edited February 2019 in Business Tax
In the bpp question bank practice test two for the capital allowance question there’s a piece of plant and machinery that’s been sold for £5970 but the amount deducted in the computation is £4100 which was the original cost? Do you always need to deduct the original cost if there’s been a gain on the asset when it’s been disposed of?


  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Hi @SophieChall
    Disposal proceeds for capital allowances purposes are limited to their original cost. So you use the lower of either proceeds or cost.
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