[F1104EDisposal value of special rate assetsU.K.
(1)This section applies if—
(a)section 104D (writing-down allowances at [F2[F36%] or] 10%) has had effect in relation to any special rate expenditure incurred by a person (“the taxpayer”),
(b)any disposal event occurs in relation to the item on which the expenditure was incurred,
(c)the disposal value to be brought into account by the taxpayer would (but for this section) be less than the notional written-down value of the item, and
(d)the disposal event is part of, or occurs as a result of, a scheme or arrangement the main purpose or one of the main purposes of which is the obtaining by the taxpayer of a tax advantage under this Part.
(2)The disposal value that the taxpayer must bring into account is the notional written-down value of the item.
(3)The notional written-down value is—
where—
QE is the taxpayer's expenditure on the item that is qualifying expenditure, and
A is the total of all allowances which could have been made to the taxpayer in respect of that expenditure if—
(a)that expenditure had been the only expenditure that had ever been taken into account in determining the taxpayer's available qualifying expenditure,
(b)where the item is a long-life asset, that expenditure had not been prevented by the application of a monetary limit from being long-life asset expenditure, and
(c)all allowances had been made in full.]
Textual Amendments
F1Pt. 2 Ch. 10A inserted (with effect in accordance with Sch. 26 para. 14 of the amending Act) by Finance Act 2008 (c. 9), Sch. 26 para. 2
F2Words in s. 104E(1)(a) inserted (with effect in accordance with s. 10(8)-(13) of the amending Act) by Finance Act 2011 (c. 11), s. 10(4)(b)
F3Word in s. 104E(1)(a) substituted (with effect in accordance with s. 31(4)(8) of the amending Act) by Finance Act 2019 (c. 1), s. 31(3)(c)
Modifications etc. (not altering text)
C13S. 104E modified (21.7.2008) by Finance Act 2008 (c. 9), s. 83(7)