Capital Allowances Act 2001

Capital Allowances Act 2001

2001 CHAPTER 2

Commentary on Sections

Glossary

Part 6: Research and development allowances

Chapter 3: Allowances and charges

Section 443: Disposal values and disposal events

1551. This section is based on sections 138(1), (3A), (4), (5) and (6) and 138A(1) of CAA 1990. It says when a disposal value is brought into account and gives a Table from which the amount of the disposal value can be found.

1552. Subsection (1) gives the main cases in which a disposal value must be brought into account.

1553. Subsection (2) is a signpost to another case in which a disposal value must be brought into account.

1554. Subsection (3) gives cases excluded from subsection (1).

1555. Subsection (4) has a Table giving the disposal value if subsection (1) applies. There are minor changes referring to:

• “net proceeds” of sale; section 138(4)(a) of CAA 1990 refers to “proceeds”; and

• limiting other compensation to “capital sums” – a limitation which is not in section 138(5) of CAA 1990

1556. These bring the Table closer to the formulations used in other Parts of this Act. See Change 50 in Annex 1.

1557. Subsection (5) sets out exceptions from subsection (4).

1558. Subsection (6) provides a signpost to a provision concerning additional VAT rebates that could lead to a disposal value being brought into account without the existence of a disposal event.

1559. Subsection (7) defines “disposal event”.