Work out asset disposal gain instantly with clear inputs, formula shown and shareable results.
A disposal gain or loss is simply net proceeds less net book value. It is an accounting correction, not trading profit: a large gain usually means depreciation was charged too fast, and a large loss means it was too slow or the asset was impaired without being written down.
Net book value
NBV = Cost - Accumulated depreciation
Gain on disposal
Gain = (Proceeds - Disposal costs) - Net book value
Indicative accounting outcome only. Tax on disposals depends on capital allowance pools, balancing adjustments and jurisdiction-specific rules. Not tax advice.
In other income within operating profit for most frameworks, disclosed separately if material. It is not revenue.
Rarely. Tax uses the tax written-down value, which usually differs from book value, producing a balancing allowance or charge instead.