34(1)Sub-paragraphs (2) to (5) apply for the purposes of [F1Part 3 of the Capital Allowances Act], and the other provisions of that Act which are relevant to that Part, if there is a disposal by virtue of a relevant transfer of the relevant interest in—U.K.
(a)an industrial building or structure, or
(b)a qualifying hotel or a commercial building or structure.
(2)The disposal is to be treated as a sale of that relevant interest.
(3)The sale moneys in respect of that sale are to be taken—
(a)if a capital sum is received by the transferor or a person connected with the transferor by way of consideration or compensation in respect of the disposal, to be an amount equal to that capital sum, or
(b)if no such capital sum is received, to be nil.
(4)The sale moneys in respect of that sale are to be taken, as respects the transferee only, to include in addition an amount equal to any capital sum received by a person other than the transferor or a person connected with the transferor by way of consideration or compensation in respect of the acquisition of the relevant interest by the transferee.
(5)[F2Sections 567 to 570 of that Act (sales treated as being for alternative amount)] are not to have effect in relation to that sale.
(6)Sub-paragraph (7) applies for determining, in the case of [F3plant or machinery]which is treated for the purposes of [F4the Capital Allowances Act] as disposed of by virtue of a relevant transfer, the amount which (in consequence of that disposal) is to be brought into account as the disposal value of that [F3plant or machinery] for the purposes of [F5sections 60 of that Act (meaning of “disposal value” and “disposal event”)].
(7)The amount is, subject to [F6section 62 of that Act (general limit on amount of disposal value)] to be taken—
(a)if a capital sum is received by the transferor or a person connected with the transferor by way of consideration or compensation in respect of the disposal, to be an amount equal to that capital sum, or
(b)if no such capital sum is received, to be nil.
(8)Sub-paragraph (9) applies if, in consequence of a disposal by virtue of a relevant transfer, [F7a person is treated by section 188 of the Capital Allowances Act as ceasing to own a fixture] at any time.
(9)The amount which, in consequence of that disposal, is to be brought into account as the disposal value of the fixture for the purposes of [F8section 60 of the Capital Allowances Act is, subject to section 62 of that Act], to be taken—
(a)if a capital sum is received by the transferor or a person connected with the transferor by way of consideration or compensation in respect of the disposal, to be an amount equal to that portion of that capital sum which falls (or, if the person to whom the disposal is made were entitled to an allowance, would fall) to be treated for the purposes of [F9Part 2 of that Act] as expenditure incurred by that person on the provision of the fixture, or
(b)if no such capital sum is received, to be nil.
(10)Sub-paragraphs (3), (4), (7) and (9) have effect despite any other provision of [F10the Capital Allowances Act].
Textual Amendments
F1Words in Sch. 26 para. 34(1) substituted (22.3.2001, with effect as mentioned in 2001 c. 2, s. 579(1)) by 2001 c. 2, s. 578, Sch. 2 para. 109(26)
F2Words in Sch. 26 para. 34(5) substituted (22.3.2001, with effect as mentioned in 2001 c. 2, s. 579(1)) by 2001 c. 2, s. 578, Sch. 2 para. 109(27)
F3Words in Sch. 26 para. 34(6) substituted (22.3.2001, with effect as mentioned in 2001 c. 2, s. 579(1)) by 2001 c. 2, s. 578, Sch. 2 para. 109(28)(a)
F4Words in Sch. 26 para. 34(6) substituted (22.3.2001, with effect as mentioned in 2001 c. 2, s. 579(1)) by 2001 c. 2, s. 578, Sch. 2 para. 109(28)(b)
F5Words in Sch. 26 para. 34(6) substituted (22.3.2001, with effect as mentioned in 2001 c. 2, s. 579(1)) by 2001 c. 2, s. 578, Sch. 2 para. 109(28)(c)
F6Words in Sch. 26 para. 34(7) substituted (22.3.2001, with effect as mentioned in 2001 c. 2, s. 579(1)) by 2001 c. 2, s. 578, Sch. 2 para. 109(29)
F7Words in Sch. 26 para. 34(8) substituted (22.3.2001, with effect as mentioned in 2001 c. 2, s. 579(1)) by 2001 c. 2, s. 578, Sch. 2 para. 109(30)
F8Words in Sch. 26 para. 34(9) substituted (22.3.2001, with effect as mentioned in 2001 c. 2, s. 579(1)) by 2001 c. 2, s. 578, Sch. 2 para. 109(31)(a)