Looking to buy a Leon mk3 - tax woes selling old car?

[Manderi]

Hello I will likely be buying a Leon MK3 (not sure what spec yet! ) when I've paid off my current car which is at the end of its finance agreement, a 2015 Focus ST. However I was wondering how income tax would work on selling the car - I work full time and according to this income tax calculator (https://www.after-tax.co.uk/) I am very borderline the next tax band. Surely selling the car will put me into the next tax band for income? Or does it not count as income? Hoping someone here can put my mind to rest lol. Thanks in advace!

 

[ramborobert]

Hello I will likely be buying a Leon MK3 (not sure what spec yet! ) when I've paid off my current car which is at the end of its finance agreement, a 2015 Focus ST. However I was wondering how income tax would work on selling the car - I work full time and according to this income tax calculator (https://www.after-tax.co.uk/) I am very borderline the next tax band. Surely selling the car will put me into the next tax band for income? Or does it not count as income? Hoping someone here can put my mind to rest lol. Thanks in advace!

it's not income so I very much doubt it.

 

[Deleted member 103408]

Simple answer Nothing to worry about no tax due unless you are dealing lots of cars.

Income tax in general is on the Income ( so for example if you were renting the car out then the money you got could be classed as a sort of income).

Capital Gains tax on Assets is only applicable on assets where you have made more than xx a year and you car will have cost you money not made you money so again nothing to worry about.

 

[DEAN0]

Is the car declared as a "company car" ? - and do you claim the monthly purchase costs against the business ?

 

[ben4012]

You've already paid tax on the money you bought the car with. Nothing to pay on sale.

 

[R4CK5]

Nothing to do with income tax. You've already paid tax on your earnings which have then been used to pay for the car. Its just a purchased item which you are now selling.

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