63 Cases in which disposal value is nilU.K.
(1)If a person disposes of plant or machinery by way of gift in circumstances such that there is a charge to tax under [F1ITEPA 2003], the disposal value of the plant or machinery is nil.
(2)If a person carrying on a relevant qualifying activity makes a gift of plant or machinery used in the course of the activity—
(a)to a [F2charitable trust F3...],
[F4(aa)to a charitable company F5...,
(ab)to a registered club within the meaning of Chapter 9 of Part 13 of CTA 2010 (community amateur sports clubs),]
(b)to a body listed in [F6section 468 of CTA 2010] (various heritage bodies and museums), or
(c)for the purposes of a designated educational establishment within the meaning of [F7section 110 of ITTOIA 2005 or] [F8section 106 of CTA 2009] (gifts to educational establishments),
the disposal value of the plant or machinery is nil.
(3)In subsection (2) “relevant qualifying activity” means a qualifying activity consisting of—
(a)a trade,
(b)[F9a] [F10UK] [F11property] business,
F12(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d)an F13[F14... overseas] property business, F15...
(da)F16... or
(e)a profession or vocation.
(4)Subsection (2) [F17—
(a)]needs to be read with [F18section 109 of ITTOIA 2005 and] [F19section 108 of CTA 2009] (which provide for a charge to tax if subsection (2) applies in circumstances in which the donor or a connected person receives a benefit attributable to the gift)[F20, and
(b)is subject to section 809ZM of ITA 2007 and section 939F of CTA 2010 (removal of tax relief in respect of tainted charity donations etc).]
(5)If expenditure is treated under section 27(2) (expenditure on thermal insulation, safety measures, etc.) as having been incurred on plant or machinery, the disposal value of the plant or machinery is nil.
Textual Amendments
F1 Words in s. 63(1) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1) , s. 723 , Sch. 6 para. 250 (with Sch. 7 )
F2Words in s. 63(2)(a) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 328(a) (with Sch. 2)
F3Words in s. 63(2)(a) omitted (with effect in accordance with art. 12 of the commencing S.I.) by virtue of Finance Act 2010 (c. 13), Sch. 6 paras. 16(a)34(2); S.I. 2012/736, art. 12
F4S. 63(2)(aa)(ab) inserted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 328(b) (with Sch. 2)
F5Words in s. 63(2)(aa) omitted (with effect in accordance with art. 12 of the commencing S.I.) by virtue of Finance Act 2010 (c. 13), Sch. 6 paras. 16(b)34(2); S.I. 2012/736, art. 12
F6Words in s. 63(2)(b) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 328(c) (with Sch. 2)
F7 Words in s. 63(2)(c) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5) , s. 883(1) , Sch. 1 para. 535(2) (with Sch. 2 )
F8Words in s. 63(2)(c) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 482(2) (with Sch. 2 Pts. 1, 2)
F9Word in s. 63(3)(b) substituted (for the purposes of corporation tax, in relation to accounting periods beginning on or after 1.4.2025 and, for the purposes of income tax, in relation to periods of account beginning on or after 6.4.2025) by Finance Act 2025 (c. 8), Sch. 5 paras. 8(9)(a), 12(3) (with Sch. 5 paras. 15, 18, 19)
F10Word in s. 63(3)(b) inserted (with effect in accordance with Sch. 14 para. 13 of the amending Act) by Finance Act 2011 (c. 11), Sch. 14 para. 12(10)(a)
F11 Word in s. 63(3)(b) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5) , s. 883(1) , Sch. 1 para. 535(3) (with Sch. 2 )
F12S. 63(3)(c) omitted (for the purposes of corporation tax, in relation to accounting periods beginning on or after 1.4.2025 and, for the purposes of income tax, in relation to periods of account beginning on or after 6.4.2025) by virtue of Finance Act 2025 (c. 8), Sch. 5 paras. 8(9)(b), 12(3) (with Sch. 5 paras. 15, 18, 19)
F13Word in s. 63(3)(d) omitted (for the purposes of corporation tax, in relation to accounting periods beginning on or after 1.4.2025 and, for the purposes of income tax, in relation to periods of account beginning on or after 6.4.2025) by virtue of Finance Act 2025 (c. 8), Sch. 5 paras. 8(9)(c), 12(3) (with Sch. 5 paras. 15, 18, 19)
F14Words in s. 63(3)(d) substituted (with effect in accordance with Sch. 14 para. 13 of the amending Act) by Finance Act 2011 (c. 11), Sch. 14 para. 12(10)(c)
F15Word in s. 63(3)(d) omitted (with effect in accordance with Sch. 14 para. 13 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 14 para. 12(10)(d)
F16S. 63(3)(da) omitted (for the purposes of corporation tax, in relation to accounting periods beginning on or after 1.4.2025 and, for the purposes of income tax, in relation to periods of account beginning on or after 6.4.2025) by virtue of Finance Act 2025 (c. 8), Sch. 5 paras. 8(9)(d), 12(3) (with Sch. 5 paras. 15, 18, 19)
F17Words in s. 63(4) renumbered as s. 63(4)(a) (with effect in accordance with Sch. 3 para. 27 of the amending Act) by Finance Act 2011 (c. 11), Sch. 3 para. 4(a)
F18 Words in s. 63(4) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5) , s. 883(1) , Sch. 1 para. 535(4) (with Sch. 2 )
F19Words in s. 63(4) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 482(3) (with Sch. 2 Pts. 1, 2)
F20S. 63(4)(b) and word inserted (with effect in accordance with Sch. 3 para. 27 of the amending Act) by Finance Act 2011 (c. 11), Sch. 3 para. 4(b)
Modifications etc. (not altering text)
C1S. 63(2) modifed (with effect as mentioned in s. 58(4) of the amending Act) by Finance Act 2002 (c. 23), s. 58, Sch. 18 para. 9(3)(c)