Part 2

Plant and machinery allowances
Chapter 8

Cars, etc.

Cars above the cost threshold

Cases where Chapter 17 (anti-avoidance) applies
79
1
This section applies if—
a
a disposal value is required to be brought into account under section 61, and
b
the disposal event is that the person concerned ceases to own a car to which section 74 applies because of—
i
a sale, or
ii
the performance of a contract,
which is a relevant transaction for the purposes of Chapter 17 (anti-avoidance).
2
The disposal value to be brought into account is—
a
the market value of the car at the time of the event referred to in subsection (1), or
b
if less, the capital expenditure incurred, or treated as incurred, on the provision of the car by the person disposing of it.
3
The person acquiring the car is to be treated as having incurred capital expenditure on its provision of an amount equal to the disposal value required to be brought into account under subsection (2).