Accounting for disposal and purchase of vehicles

Carnmore

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I had a work vehicle for 8 years and disposed of it in December 2018, the final year of the capital allowance claim. The annual claim is €867 which will be claimed for 2018. The vehicle was sold for €3000. It appears the vehicle was sold for a 'profit'.

How is this accounted for in an income tax computation and capital allowances computation?

A replacement vehicle was purchased in December 2018.
Can capital allowances be claimed against two vehicles in the same year?
 

RedOnion

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The 'profit' on disposal is called a balancing charge, and is subject to tax. It's a way of clawing back the extra relief you received.
 

Carnmore

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The 'profit' on disposal is called a balancing charge, and is subject to tax. It's a way of clawing back the extra relief you received.
Thank you RedOnion.

Income tax? If so should it be listed as income?

Any thoughts on the rest of my post?
 

RedOnion

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Essentially it's a negative capital allowance, if that makes sense?

Yes, you can have multiple vehicles in the same year.
 

RedOnion

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As a negative capital allowance...
Instead of a capital allowance of +867, you've actually got -2,133 for that vehicle.
 
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