When do I have to pay tax on the sale of a business vehicle? Keep it but no longer use it for business purposes.Get compensation for it, for example, because you total your car and get an insurance payout.Swap it for something else, for example, if you trade in your old company car for a new one.Give it away as a gift or transfer it to another person.
In the UK, you may have to pay capital gains tax - or corporation tax, if you do business as a limited liability company - whenever you ‘dispose of' a business asset.HMRC considers you to have disposed of a business asset if you: What are the tax implications of selling or trading in your business vehicle? Here's a look at some of the chief tax issues you need to be aware of if you're self-employed and thinking of selling or trading in your car (or getting rid of it some other way). Whatever the reasons behind it, selling a vehicle you use in your business usually has tax implications, just like the sale of any other business assets. Or maybe you'd like to cut down on expenses by switching to a cleaner, more fuel-efficient and, so, more cost-effective model. Perhaps your current company car has seen better days, so you've decided to get rid of it.
