Selling a car owned by ltd company

Discussion in 'Accounts & Finance' started by bensurveyor, Feb 12, 2020.

  1. bensurveyor

    bensurveyor UKBF Newcomer Free Member

    1 0
    Hi all,

    First post, long time lurker!

    I own an electric car paid for by my company this tax year for circa 25k. We may want to sell it to buy a bigger vehicle/plug in hybrid. We could sell it for 20k.

    The car was bought from profit in the company hence the purchase has come off the profit margin and reduced our CTax bill for the year. If we sell it this year i assume we would have to pay C.Tax on the 20k recouped? Would this change if we waited until the following year?

    Apologies if this doesn't make sense!

    regards ben
     
    Posted: Feb 12, 2020 By: bensurveyor Member since: Feb 12, 2020
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    15,684 3,313
    If you set the whole cost against corporation tax when you bought it the whole proceeds are liable for tax.
     
    Posted: Feb 12, 2020 By: Scalloway Member since: Jun 6, 2010
    #2