Example
Assume in the example above that P claims writing-down allowances of £3,500 x 25% = £875.
Then P carries forward £3,500 - £875 = £2,625 unrelieved qualifying expenditure to 2003-04.
P can also allocate to the pool for 2003-04 the balance of the first-year qualifying expenditure on the van on which first-year allowances were claimed (see section 58(5)): £2,500 - £1,000 = £1,500.
So assuming no other expenditure and no disposals P has for 2003-04 available qualifying expenditure (see section 57):
qualifying expenditure allocated to the pool for 2003-04 £1,500
unrelieved qualifying expenditure carried forward £2,625
available qualifying expenditure £4,125
Section 60: Meaning of “disposal receipt” and “disposal event”
302.This section is based in part on section 24(6) of CAA 1990. It defines two terms used in this Part.
303.CAA 1990 refers to disposal values. The disposal value there is, broadly, the amount a person may have to bring into account in a pool on the occurrence of various events. But there is no simple term for those events. Nor is the disposal value always the amount actually brought into account. It may for example be limited by section 26(2) of CAA 1990 (see section 62).
304.In the interests of clarity this section defines:
disposal receipt to mean the amount actually brought into account as a result of a disposal event – the amount which feeds into TDR. The disposal receipt may be less than the disposal value; and
disposal event to refer to the events of the type which require a disposal value to be brought into account.
305.Subsection (3) is based on section 24(6) of CAA 1990. It prevents more than one disposal value being brought into account for the same expenditure on the same plant or machinery in the same pool. This makes clear what has long been the understanding of section 24 of CAA 1990 and the practice. See Change 9 in Annex 2.
306.However, a person may be required to bring more than one disposal value into account in respect of the same plant or machinery in some circumstances. For example if they buy, sell and buy again the same plant or machinery in one chargeable period there will be two disposal values for the two separate amounts of qualifying expenditure.
307.Similarly there may be disposal values in respect of the same plant or machinery in different pools in the same chargeable period.
