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Budget 2024 | The Government has confirmed changes and provided more information on FamilyBoost. Find out more: FamilyBoost

Budget 2024 | The Government has confirmed changes to personal income tax, the independent earner tax credit, in-work tax credit, and the minimum family tax credit. Find out more: Personal income tax threshold changes

You need to keep details of business assets and their depreciated value for at least 7 years.

Record details

Depreciation records need to include each asset’s:

  • purchase value
  • depreciation claimed per year
  • adjusted tax value
  • depreciation recovered through sales.

Adjusted tax value is the value of an asset after depreciation has been removed.

Selling depreciated assets

If you sell or dispose of a depreciated asset, you need to detail any loss or gain in your income tax return. This also applies if you’ve:

  • sold a house that had a depreciated area
  • ceased business.

Selling an asset (other than pooled assets) for more than its adjusted tax value will create a profit. You’ll need to include the profit as income in your tax return. Loss or gain adjustments are made in the year you sell or dispose of the asset.

You cannot claim depreciation in the year that you dispose of an asset.

Private use assets

If an asset has business and private use, you must divide any losses or gains between those uses, in proportion to their use. 

Detail loss or gain at the beginning of the next income year for depreciated assets you:

  • stopped using for business
  • kept for private use.

Work out the loss or gain using the asset's market value.


Work out straight-line depreciation

Work out diminishing value depreciation

Last updated: 08 Mar 2021
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