Capital Allowances Act 1990

156 Meaning of “sale, insurance, salvage or compensation moneys”

In this Act, except where the context otherwise requires, “sale, insurance, salvage or compensation moneys” means, in relation to an event which gives rise or might give rise to a balancing allowance or a balancing charge to or on any person, or is material in determining whether any, and if so what, writing-down allowance is to be made to a person under Part IV—

(a) where the event is the sale of any property, the net proceeds to that person of the sale;

(b) where the event is the coming to an end of an interest in property on or by reason of the coming to an end of a foreign concession, any compensation payable to that person in respect of that property;

(c) where the event is the demolition or destruction of any property, the net amount received by him for the remains of the property, together with any insurance moneys received by him in respect of the demolition or destruction and any other compensation of any description received by him in respect thereof, in so far as that compensation consists of capital sums;

(d) where the event is that a building or structure ceases altogether to be used or machinery or plant is put out of use, any compensation of any description received by him in respect of that event, so far as that compensation consists of capital sums.

This section does not apply for the purposes of Part II.