Corporation tax (in tax return CT600) when you sold VAN

meekate Registered Posts: 2

Would like to ask about Corporation tax when you sold VAN.

Limited company year end 31 Dec every year.

If I brought van 2,000 on 1/1/2019 and depreciation 25% reducing balance
At 31/12/2019, I claimed this van full capital allowances 2,000 in company tax return CT600.

At 31/12/2020 van net book value was 1,125 and same days 31/12/2020 sold van for 2,000.
So, Gain on sale of this van in year end account is 875.

How much ***corporation tax (in tax return CT600)*** need to pay for Gain on sale of this VAN?

Is it 875*19% or 2000*19%?

Thank you very much in advance.


  • meekate
    meekate Registered Posts: 2
    Got answer that I confused

    You paid £2000, you got a £2000 allowance.

    You got £2000, you get taxed on £2000.

    All very logical.

    By lionofludesch

    Thank you so much
  • douglasstroud
    douglasstroud Registered Posts: 212
    I agree with Lion
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