http://www.legislation.gov.uk/ukpga/2001/2/section/108/notesMineral extraction, mining, quarryingLegislationLegal servicesTaxCapital expenditureExplanatory Notes to Capital Allowances Act 2001Inland RevenueKing's Printer of Acts of Parliament2018-08-24
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2001/2" id="c00001" Class="UnitedKingdomPublicGeneralAct" Year="2001" Number="0002">Capital Allowances Act 2001</Citation>
2
22nd March 2001
Commentary on SectionsGlossary<CitationSubRef id="c00119" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/part/2" CitationRef="c00001" SectionRef="part-2">Part 2</CitationSubRef>: Plant and machinery allowances<CitationSubRef id="c00702" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/chapter/11" CitationRef="c00001" SectionRef="chapter-11">Chapter 11</CitationSubRef>: Overseas leasing
<CitationSubRef id="c00736" URI="http://www.legislation.gov.uk/id/ukpga/2001/2/section/108" CitationRef="c00001" SectionRef="section-108">Section 108</CitationSubRef>: Effect of disposal to connected person on overseas leasing pool
458
This section is based on section 41(5) of CAA 1990. It prevents disposals to a connected person being used to get a balancing allowance in respect of an overseas leasing pool. It does so by modifying the disposal value that has to be brought into account in the overseas leasing pool. The person acquiring the plant or machinery is treated as having incurred expenditure equal to the disposal value so as to get the right answer in terms of total allowances over the period of their combined ownership.