Selling Business Assets and updating accounts

[RJP78]

This post is about buying business equipment and selling it once its no longer needed. How much tax do I need to pay back to HMRC?

I'm a sole trader and in 2014 I bought a video camera for my business for £2600. I claimed 100% of this cost as a business expense through my annual investment allowance.

I no longer need this item - it's been replaced with a newer model so I'm planning to sell this asset for £1000 to a private buyer. If bought new, this asset sells for about £1800 new nowadays.

How do I account for this sale of a business asset?

How much tax do I need to pay back to HMRC?

Do I need to consider depreciation?

Thanks for your time in sharing your advice.

[bd6759]

For Capital Allowance purpsoes, the amout received from the sale of asset is deducted from the general pool.