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Where Taxpayers and Advisers Meet

Sell vehicle

zk161290
Posts:1
Joined:Sun Aug 22, 2021 10:58 pm
Sell vehicle

Postby zk161290 » Sun Aug 22, 2021 11:04 pm

Hi

If i am a sole trader and I purchase a 0% emissions electric vehicle. I then use first year allowance to offset the full cost of the vehicle as a buyer expense (assuming 100% business use) in year 1.

What happens in when i sell the vehicle (for example in year or year 3), if i sell for less than what i paid I believe i am not liable for capital gains tax. But theoretically the car cost me alot less than the market value initially as i offset the cost as a tax expense.

Would i then be liable to payback the tax relief of the cost of the vehicle which was initially claimed?

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: Sell vehicle

Postby Jholm » Tue Aug 24, 2021 9:42 am

Sale proceeds would go into your capital allowances computation as a balancing charge.


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