Selling partly % claimed expenses

[develectrics]

Hi, I'm self-employed as a sole trader, I know that when I claim expenses that are partly used for personal use, that I only claim a percentage as an expense. So say I buy a van for £10,000 and use it 80% of the time for business, I can claim £8,000 as an expense. My question is, say I sold it for £10,000, do I declare only 80% as income in the same way?

(That makes sense to me as to make an extreme example, say I bought a van for £100,000 and used it 10% for business so claimed £10,000 as an expense, then sold for £100,000, I surly wouldn't be expected to declare £100,000 as taxable income, that's ridiculous.)

Thanks!

 

[DWS]

Yes, it is only the business portion of the asset which is accountable

 

[neilsolaris]

It would be recorded as a capital gain, if there was a gain, just recording the business percentage like you said.

In your example, the gain would be zero!

 

[DWS]

It would be recorded as a capital gain, if there was a gain, just recording the business percentage like you said.

In your example, the gain would be zero!

It depends on how the purchase was recorded in the accounts, if AIA were claimed then the £10k would be the disposal proceeds and if then sold for £10k this would result in a balancing charge.
If using cash basis then the purchase is an expense and the disposal is income.

 

[develectrics]

It depends on how the purchase was recorded in the accounts, if AIA were claimed then the £10k would be the disposal proceeds and if then sold for £10k this would result in a balancing charge.
If using cash basis then the purchase is an expense and the disposal is income.

Thanks