[F138B(1)This paragraph applies if—U.K.
(a) a company owns any plant or machinery at any time on any day (“ the relevant day ”),
(b)a question arises as to the application of this Schedule,
(c)for the purpose of determining that question regard must be had to the amount (if any) which falls (or would fall) to be shown in any balance sheet of the company in respect of the plant or machinery, and
(d)condition A or B is met.
(2)Condition A is met if there would (but for this paragraph) be no amount which would fall to be shown in the balance sheet of the company in respect of the plant or machinery.
(3)Condition B is met if the amount which (but for this paragraph) would fall to be shown in the balance sheet of the company in respect of the plant or machinery is less than the amount which, on the relevant assumption, would fall to be so shown.
(4)For the purpose of determining any question which arises as to the application of this Schedule, the amount which falls (or would fall) to be shown in any balance sheet of the company in respect of the plant or machinery is to be determined on the relevant assumption (as well as on the other assumptions applicable under other provisions of this Schedule).
(5)The relevant assumption is that the company has no liabilities of any kind at any time on that day.
(6) For this purpose “ liabilities ” includes any share capital issued by the company which falls to be treated for accounting purposes as a liability. ]
Textual Amendments
F1Sch. 10 paras. 38A, 38B inserted (with effect in accordance with Sch. 6 para. 2(5)(6) of the amending Act) by Finance Act 2007 (c. 11), s. 31, Sch. 6 para. 2(4)