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No. The sale proceeds are subtracted from the tax written down value to calculate the balancing charge or balancing allowance. This is the normal tax rule.
I do explain all this in my free lectures on investment appraisal with tax.
The scrap value on the initial investment is not taxed. This is because the scrap value represents the residual or salvage value of an asset at the end of its useful life.
When an asset is disposed of, the tax implications are based on the proceeds from the disposal minus the cost of the asset, not including the scrap value.
The scrap value is not considered as part of the taxable gain or loss calculation.
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