SCHEDULES

SCHEDULE 10Taxation provisions relating to transfer schemes

Part 1Transfers to a national authority under section 1(2) schemes

Capital allowances: determination of disposal value of plant or machinery

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1

This paragraph applies to a relevant transfer of plant or machinery which is a disposal event for the purposes of Part 2 of the 2001 Act (capital allowances for plant and machinery).

2

For the purposes of the application of section 61 of that Act in relation to the transferor, the disposal value of the plant or machinery is to be treated—

a

if a capital sum is received by the transferor by way of consideration or compensation in respect of the transfer, as an amount equal to that sum; or

b

if no such sum is received, as nil.

3

For the purposes of this paragraph a sum received by a person connected with the transferor is to be treated as received by the transferor.

4

Section 88 of the 2001 Act (sales at an undervalue) is to be disregarded.

5

This paragraph is subject to sections 63(5) and 68 of the 2001 Act.