Disposed of car, capital allowances

[Minding my own business]

When a car is disposed of for less than the remaining balance in the capital allowances pool, how should it be accounted for?

For example, if a car has £5000 left on the balance in the pool and is sold for £2500, what happens to the remaining £2500? Is this kept in the pool or written off?

[pawncob]

If it's in a pool it stays there. If it's outside the pool the balancing allowance is a deduction from profits.

[bd6759]

If this is for income tax (as opposed to corporation tax) the car should be in a single special rate pool because there will undoubtedly be some non-business use.

The £2500, restricted by the non-business use, will be a balancing allowance.

[Minding my own business]

Thank you. Yes the car was in a special pool with personal use deducted.

[The Accounting Studio]

You will need to calculate a balancing allowance