Where a capital allowance is given, a trader can write off the cost of an asset against the profits of the trade1. Rules are therefore needed to govern the interaction of the capital allowances regime and CGT. Essentially, if the trader later sells the asset for more than its original cost, the difference between original cost and the written-down amount will be dealt with under the capital allowances regime2. The excess of proceeds over original cost will be subject to CGT under the usual rules3. The usual CGT reliefs may be available
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