Finance Act 2009 Explanatory Notes

No reduction of allowable expenditure

4.Paragraph 3 applies in respect of deemed disposals. Where a qualifying asset ceases to be used in connection with a taxable field and is used for another purpose, paragraph 8 of Schedule 1 to OTA 1983 deems a disposal giving rise to a disposal receipt. This disposal receipt is based on a time apportioned restriction of the allowable cost of the asset in respect of the use made of the asset. This paragraph prevents such a disposal receipt from arising where the other purpose is a qualifying purpose.

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