SCHEDULES
SCHEDULE 1Capital allowances
PART 3Amendments of Part 2 of CAA 2001: plant and machinery allowances
6
1
Section 61 (disposal events and disposal values) is amended as follows.
2
In the Table in subsection (2)—
a
in item 1, in the first column, after “item 2” insert “
or 2A
”
, and
b
after item 2 insert—
2A. Sale of the plant or machinery where—
- a
the sale is at less than market value,
- b
the condition in subsection (4A) is met by the seller, and
- c
the condition in subsection (4B) is met by the buyer.
The market value of the plant or machinery at the time of the sale.
3
After subsection (4) insert—
4A
The condition referred to in paragraph (b) of item 2A in the Table is met by the seller if—
a
the seller is—
i
a company, or
ii
a partnership whose partners include one or more companies, and
b
before the sale the plant or machinery is used wholly or partly for the purposes of a qualifying activity that is not an NI rate activity.
4B
The condition referred to in paragraph (c) of item 2A in the Table is met by the buyer if—
a
the buyer is a Northern Ireland SME company, a NIRE company or a Northern Ireland firm in the chargeable period of the buyer in which the plant or machinery is bought,
b
the buyer's expenditure on the acquisition of the plant or machinery is qualifying expenditure under this Part or Part 6 (research and development allowances), and
c
the plant or machinery is used by the buyer wholly or partly for the purposes of an NI rate activity.