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what would happen if we are selling a business asset(plant and machinery) of an unincorporated business(sole trader) at a value higher than its cost. As we have claimed AIA on it we can only include disposal price max upto its original price. what happens to extra amount we gained on selling the asset for which we have claimed AIA? how are we taxed on it?
Thanks in advance
In the unlikely situation of plant and machinery being sold at above cost then a capital gain would be computed unless the chattel exemption applied as it was bought and sold for less than £6,000