Depreciable Assets
23.67. Where assets on which depreciation has been allowed for income tax purposes are sold at a price greater than the original cost of such assets, the excess should be regarded as a capital gain. It is to be noted, however, that the practical application of capital gains tax in the area of depreciable property on which a surplus arises on sale will usually be mitigated by the roll-over provisions referred to in paragraph 23.69. Where the asset is sold for less than the written-down value, the deficit will, as now, be treated as an income loss.