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Following on from the recent question on woodland ('Back to nature', Taxation, 5 January 2006, page 350), my client has a truck which they have used for the purposes of their woodland activity.
They are going to sell the truck at a loss and they have asked me if this will then be an allowable capital loss.
Normally when such an asset is used in a business there would be no allowable loss because capital allowances would have been claimed, but they could not make such
a claim.
Following on from the recent question on woodland ('Back to nature' Taxation 5 January 2006 page 350) my client has a truck which they have used for the purposes of their woodland activity.
They are going to sell the truck at a loss and they have asked me if this will then be an allowable capital loss.
Normally when such an asset is used in a business there would be no allowable loss because capital allowances would have been claimed but they could not make such
a claim.
Moving on a truck is a depreciating asset and is thus exempt from capital gains tax 'unless capital allowances could have been claimed' which they could have been if the activity was not outside the scope of income tax.
I think that the overall effect of this is to deny any relief for the loss on the truck...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
