[nothemsworth]

Thank you for the prompt reply.

Again, you have stated, “If you have claimed capital allowances on an asset then there is no CGT as the sale of the asset is dealt with in the CA computation.”

But, the rule is wasting chattels are exempt from CGT (unless they are plant and machinery for which capital allowances have been claimed). So plant and machinery for which cap allowances have been claimed, qualify for CGT, UNLESS, it’s a loss, because if it’s a loss, the capital allowances would have already given tax relief for the expenditure, and hence a capital loss is not allowable.

Please verify that whatever I have written above is correct.

[Author]

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