Part 6 Research and development allowances
Chapter 3 Allowances and charges
443 Disposal values and disposal events
1
A person is required to bring a disposal value into account in respect of qualifying expenditure incurred by him if—
a
he ceases to own an asset representing the expenditure, or
b
an asset representing the expenditure is demolished or destroyed at a time when he owns the asset.
2
Subsection (1) is to be read with section 555 (disposal of oil licence with exploitation value).
3
C14
The disposal value to be brought into account under subsection (1) depends on the disposal event, as shown in the Table—
Disposal values
1. Disposal event | 2. Disposal value |
|---|---|
1. Sale of the asset at not less than market value. | The net proceeds of the sale. |
2. Demolition or destruction of the asset. | The net amount received for the remains of the asset, together with— (a) any insurance money received in respect of the demolition or destruction, and (b) any other compensation of any description so received, so far as it consists of capital sums. |
3. Any event not falling within item 1 or 2. | The market value of the asset at the time of the event. |
5
Subsection (4) is subject to—
section 445 (costs of demolition),
section 553 (nil value in case of disposal of oil licence relating to undeveloped area), and
section 555 (disposal of oil licence with exploitation value).
6
A person is also required to bring a disposal value into account by section 448 (additional VAT rebate generates disposal value).
7
In this Chapter “disposal event” means an event of a kind that requires a disposal value to be brought into account under subsection (1).