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meekate
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Hi
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.Question>>>
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.
K
Tax Tutor
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You need to go back to the lectures and study notes as your question indicates that you have not understood the basics of either the capital allowances system or the computation of a chargeable gain which is nothing to do with the accounting treatment of an asset sale.
Are you working through the lectures and study notes?
meekate
Tax Tutor
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