Why is the 'profit on disposal of non-current asset' not in the corporation tax calculation?
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Kelly_Harvey
Registered Posts: 2
in Business Tax
is it non-assessable income or something?
And what about a loss of disposal? Any help appreciated :-)
And what about a loss of disposal? Any help appreciated :-)
0
Comments
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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
ACA/CTA -
Certificate Level - Jan 20190 -
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
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Thank you both for your answers and the link :-)0
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