Fixed assets: tax classes and what happens when you sell one
Override the statutory tax class of an asset and understand balancing allowances and charges on disposal.
Pooled countries (for example UK pools, Canada CCA classes, India blocks of assets) deduct proceeds from the pool and only charge when the pool goes negative; per-asset countries balance each asset individually. The memo's Disposals table shows exactly which rule was applied.
Step-by-step
- 1Find the Tax class column
More Tools → Operations → Equipment & Property (Fixed Assets). Each asset shows 'Auto' (matched from the rule pack by category and name) or the class you picked.
Find the Tax class column - 2Override when needed
Choose a statutory class from the dropdown (for example a special-rate pool or a specific recovery period). Reset to Auto to go back to pack matching. The memo shows the match source next to each asset.
Override when needed - 3Record a disposal
Use Dispose on the asset, enter the sale proceeds and date. The book gain or loss posts to your P&L; the tax memo removes it and applies your country's rule - a balancing allowance if you sold below tax value, a balancing charge (or recapture) if above, and the pack's treatment for any gain above original cost.
Record a disposal