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Posted Mon, 14 Oct 2024 17:24:27 GMT by anna Adcock
I bought a van in 2019 for work use. An accountant did my tax return that year and they put the whole value of the van (about £7,500) in my tax return as a capital allowance. The van was written off in 2023 and I received an insurance payout of about £5,500. I am confused about how to deal with this in my 2023-2024 accounts. I have tried google and the HMRC help pages but it seems unclear as to how i should treat an insurance payout. Can anyone help me please?
Posted Wed, 23 Oct 2024 13:53:02 GMT by HMRC Admin 19 Response
Hi,
It is likely the insurance pay out should be included as a balancing charge on self employed page of your return. You can see guidance under the headings "Disposals" and "Balancing Charge" in the following guidance, an example is included under the latter heading.
HS252 Capital allowances and balancing charges 2024
Thank you.

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