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—

  1. a

    the sale is at less than market value,

  2. b

    the condition in subsection (4A) is met by the seller, and

  3. 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.