Capital allowance- disposal of assets

SophieChallSophieChall Posts: 5Registered
edited February 25 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?


  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,461Moderator, MAAT, AAT Licensed Accountant
    Hi @SophieChall
    Disposal proceeds for capital allowances purposes are limited to their original cost. So you use the lower of either proceeds or cost.
Sign In or Register to comment.