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Hi,
Does the sale proceeds that can be recorded up to a maximum of the original cost only apply to Main Pool and Special Rate Pool?
For example if sale proceeds were £10,000 and original cost was £8,000, then £8,000 sale proceeds would be recorded in the Main Pool column.
This doesn’t seem to be the case for non-pool assets (motors) ?
For example: non-pool motor (70% business use)
Motor purchase cost was £20,000
and TWDV was £16,400 at end of year 1And for some reason, that particular model of motor increased in value and when the sole trader sold it in year 2, sale proceeds were surprisingly £30,000.
Which figure for sale proceeds would go into the non-pool column?
£30,000 – the actual cash received or £20,000 – the original cost?
Thanks
In any capital allowance computation when dealing with a disposal you will use the sale proceeds to a maximum of original cost.
In your example above therefore you will use 20,000 in computing the balancing charge.
If an asset is sold at above cost the issue of chargeable gains (CGT) then arises but a car is an exempt asset and therefore no gain would arise for CGT purposes.
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