Profit from Sales of car in I.t. act

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When selling a car in the UK, the tax implications depend on whether it was used for personal or business purposes. If it's a personal vehicle, any profit from its sale is generally not subject to income tax as it's not considered a capital asset. However, if the car was used for business, the sale may fall under the 'block of assets' system, potentially incurring tax on the profit.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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22 August 2020 I.t. Assess sales of car received from profit capital gains applicable and profit amount shown in books in treatment.

CA Shivani Singhal

CA Shivani Singhal (Expert)
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22 August 2020 If car is for personal use, it is excluded from the capital assets and no income tax is chargeable on gain on sale.
If car is for business purpose, Block of assets system will apply.