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HMRC internal manual

Capital Gains Manual

Wasting assets: road vehicles

TCGA92/S45 & TCGA92/S263

Passenger cars

Any motor vehicle which was constructed or has been adapted to carry passengers is not a chargeable asset unless it is of a type which is not normally used as a private vehicle and is unsuited for such use.  Disposals of normal motor cars are therefore exempt under TCGA92/S263.  This includes vintage cars of this type.

Other road vehicles

The exemption provided by section 263 doesn’t apply to such vehicles as:

  • taxi cabs
  • racing cars
  • single seat sports cars
  • vans, lorries or other commercial vehicles
  • motor cycles, scooters or motor cycle/sidecar combinations.

However, vehicles are machinery which means they are a wasting asset under TCGA92/S44(1)(c).  The disposal of a chattel (tangible moveable property) which is a wasting asset may be exempt under TCGA92/S45(1), see CG76721.

A disposal of such a vehicle will only give rise to a chargeable gain where capital allowances were, or could have been, claimed.  See CG15400+ for cases involving capital allowances.