Part 2Plant and machinery allowances
Chapter 5Allowances and charges
Disposal events and disposal values: general
63Cases 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 Schedule E, 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 charity within the meaning of section 506 of ICTA (charities: qualifying and non-qualifying expenditure),
(b)
to a body listed in section 507(1) of ICTA (various heritage bodies and museums), or
(c)
for the purposes of a designated educational establishment within the meaning of section 84 of ICTA (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)
an ordinary Schedule A business,
(c)
a furnished holiday lettings business,
(d)
an overseas property business, or
(e)
a profession or vocation.
(4)
Subsection (2) needs to be read with sections 83A(4) and 84(4) of ICTA (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).
(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.