Hi, we recently had an asset damaged and the insurance have paid. I am looking at the best way to replace this asset for corporation tax purposes. 1) If we recommission the asset, it will leave us with a insurance income of £80k after recommission costs, which I believe will go in our Net profit accounts for the year end. 2) The other option is to dispose of the asset, making a £90K profit on disposal and buy a new asset for £100k. Am I correct in thinking there will be no tax involved with option 2, as the allowance on the purchase will cancel out the profit on disposal? Or does insurance income work differently?