Part 2

Plant and machinery allowances
Chapter 5

Allowances and charges

Disposal events and disposal values: general

Case in which no disposal value need be brought into account
64
1
A person is not required to bring a disposal value into account in a pool for a chargeable period in respect of plant or machinery if none of the qualifying expenditure is or has been taken into account in a claim in determining the person’s available qualifying expenditure in the pool for that or any previous chargeable period.
2
Subsection (3) applies if—
a
a person (“C”) has incurred qualifying expenditure on plant or machinery,
b
C acquired the plant or machinery as a result of a transaction which was, or a series of transactions each of which was, between connected persons,
c
any connected person (apart from C) who was a party to the transaction, or one of the series of transactions, is or has been required to bring a disposal value into account as a result of the transaction,
d
a disposal event (“the relevant disposal event”) occurs in respect of the plant or machinery at a time when it is owned by C, and
e
none of C’s qualifying expenditure is or has been taken into account in a claim in determining C’s available qualifying expenditure for the chargeable period in which the relevant disposal event occurs or any previous chargeable period.
3
If this subsection applies—
a
subsection (1) does not apply in relation to the relevant disposal event, and
b
C’s qualifying expenditure is to be treated as allocated to the appropriate pool for the chargeable period in which the relevant disposal event occurs.
4
In subsection (3)—
a
“qualifying expenditure” means, if a first-year allowance has been made to C, the amount (including a nil amount) remaining after deducting the allowance, and
b
“the appropriate pool” means whichever pool is applicable in relation to C under the provisions of this Part.
5
A person takes expenditure into account in a claim if he takes it into account—
a
in a tax return;
b
by giving notice of an amendment of a tax return;
c
in any other claim under this Part.