TCGA92/S41, TCGA92/S45(3), TCGA92/S46

Miss F acquires a double cab pick-up truck for £26,000. A double cab pick-up truck is machinery and so it is a wasting asset under TCGA92/S44(1)(c). Suppose that the double cab pick-up truck:

has a predictable life of 20 years,

has a scrap value of £200,

is used 90% of the time for business, and

qualifies for capital allowances on the business part.

If the asset is sold 7 years later for £4,000 the computation is in two parts:

Non-business use part

The wasting asset was used for a non-business purpose for 10% of the time.

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