Part 2 Plant and machinery allowances

Chapter 5 Allowances and charges

Disposal events and disposal values: general

63 Cases in which disposal value is nil

(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 F13F14... 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.