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The Tangible fixed asset disposals template is where you decide how each fixed asset disposal is treated for capital allowances. You give every disposal a tax treatment — matching the pool the asset sat in — so the proceeds are removed from the right pool and any balancing charge or allowance is calculated correctly.

Table of contents 

When should I use this template?

Complete it whenever the company has disposed of fixed assets in the period. It works alongside Total fixed asset additions to keep the capital allowance pools up to date.

Before you start

A business type must be selected in the Business type section of the Return information template. If none is selected, the template shows a warning and cannot be completed.

Disposals are sourced from the fixed asset register (FAR) when it is starred; where the register is not used, disposals can be entered directly. Categories can also be populated from the Investment property register where applicable.

Analysing the disposals

The template lists the disposals, split into categories by asset type. For each row, complete:

  • Proceeds on disposal — the disposal proceeds per the accounts.
  • Profit / (loss) on disposal — the accounting profit or loss.
  • Tax proceeds (adjust if different) — the proceeds to use for tax. This defaults to the accounting proceeds but can be overridden where the tax figure differs (for example, where proceeds are capped at original cost for capital allowance purposes).
  • Tax treatment — a drop-down. Only one treatment can be applied per row, and where more than one applies, choose Multiple tax treatments to enter a breakdown that reconciles to the parent figure.

Two reconciliations are built in: the profit or loss on disposal is reconciled to the amount identified in the P&L analysis, and the disposal net book value is reconciled to the tangible fixed asset summary. Silverfin flags any difference so it can be resolved.

First-year allowances are not applied on disposal. Where an asset previously received a 100% or enhanced first-year allowance, the disposal is analysed by reference to the pool the asset would otherwise have qualified for; the proceeds are deducted from that pool, and whether a balancing charge arises depends on the pool.

What flows through to the rest of Corporation Tax?

The disposal proceeds, analysed by tax treatment, flow into the relevant capital allowance schedules and pools, where they reduce the pool and may give rise to a balancing charge or allowance. The disposal figures also feed the tangible fixed asset summary and the profit / loss on disposal reconciliation.

Frequently asked questions

Where do disposals come from?

From the fixed asset register when starred, or entered directly where the register is not used.

When would I change the "Tax proceeds"?

Where the proceeds for tax differ from the accounting proceeds — for example, where proceeds are restricted to original cost. Enter the tax figure in the "Tax proceeds (adjust if different)" column.

Why is there no first-year allowance on disposal?

First-year allowances apply to expenditure, not disposals. On disposal, the asset is analysed by reference to the pool it would otherwise have belonged to, and the proceeds are removed from that pool.

Why is there an unreconciled indicator?

The template reconciles the profit / loss on disposal to the P&L analysis and the disposal NBV to the fixed asset summary; a difference means those do not agree — check the entries.