Part 12

Supplementary provisions
Chapter 5

Miscellaneous

Sales treated as being for alternative amount

Election to treat sale as being for alternative amount
569
1
The parties to a sale of property that is not for the alternative amount may elect for the sale to be treated as being for the alternative amount if—
a
the control test is met or section 573 applies (transfers treated as sales), and
b
the tax advantage test is not met.
2
Subsection (1) is subject to section 570.
3
The alternative amount is the lower of market value and—
a
if the sale is relevant for the purposes of Part ...10, the residue of the qualifying expenditure immediately before the sale;
b
if the sale is relevant for the purposes of Part 5, the unrelieved qualifying expenditure immediately before the sale;
c
if the sale is relevant for the purposes of Part 6—
i
in a case where an allowance under Part 6 is given for the expenditure represented by the asset sold, nil;
ii
in any other case, the qualifying expenditure represented by the asset sold.
4
In subsection (3) “
residue of qualifying expenditure
”, “
unrelieved qualifying expenditure
” and “
qualifying expenditure
” have the same meaning as in the Part for the purposes of which the sale is relevant.
5
If the sale—
a
is relevant for the purposes of Part ...10, and
b
is treated as being for the residue of the qualifying expenditure immediately before the sale,
no balancing adjustment is to be made as a result of the sale under section ...517 (building not a qualifying dwelling-house throughout).
6
If, after the date of the sale, an event occurs as a result of which a balancing charge would have fallen to be made on the seller if—
a
he had continued to own the property, and
b
he had done all such things, and been allowed all such allowances, as were done by or allowed to the buyer,
the balancing charge is to be made on the buyer.
7
All such assessments and adjustments of assessments are to be made as are necessary to give effect to the election.
8
For the purposes of this section and section 570, a sale is relevant for the purposes of a Part if it is of property of a kind that is relevant for deciding whether an allowance or charge is made under that Part.
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Ss. 567-570 excluded (E.W.S.) (8.6.2005) by Railways Act 2005 (c. 14), s. 60(2), Sch. 10 para. 4(4); S.I. 2005/1444, art. 2(1), Sch. 1
Ss. 567-570 excluded (E.W.S.) (24.7.2005) by Railways Act 2005 (c. 14), s. 60(2), Sch. 10 para. 24(4); S.I. 2005/1909, art. 2, Sch.
Words in s. 569(3)(a) omitted (with effect in accordance with Sch. 27 para. 30(1) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 27 para. 15(a)
Words in s. 569(5)(a) omitted (with effect in accordance with Sch. 27 para. 30(1) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 27 para. 15(a)
Words in s. 569(5) omitted (with effect in accordance with Sch. 27 para. 30(1) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 27 para. 15(b)
Ss. 567-570 excluded (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 21(6)
Ss. 567-570 excluded (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 38(6)