PART 1

Income tax, corporation tax and capital gains tax
CHAPTER 4

Other provisions

Capital gains tax

Wasting assets
40
1
In section 45 of TCGA 1992 (exemption for certain wasting assets), after subsection (3) insert—
3A
But subsection (3) does not apply in the case of a disposal in relation to which subsection (3B) disapplies subsection (1).
3B
Subsection (1) does not apply to a disposal of, or of an interest in, an asset if—
a
at any time in the period of ownership of the person making the disposal, the asset is used for the purposes of a trade, profession or vocation carried on by another person,
b
as a result of that use, the asset becomes plant,
c
but for the asset therefore being regarded under section 44(1)(c) as having a predictable life of less than 50 years, the disposal would not be of, or of an interest in, a wasting asset, and
d
the disposal is not within subsection (3C).
3C
A disposal of, or of an interest in, an asset is within this subsection if the asset is plant used for the purpose of leasing under a long funding lease and—
a
the disposal takes place after the commencement of the term of the lease but before the termination of the lease, or
b
the disposal is the deemed disposal of the asset under section 25A(3)(a) on the termination of the lease.
3D
Section 25A(5) applies for the purposes of subsection (3C).
2
The amendment made by this section has effect—
a
for corporation tax purposes, in relation to disposals on or after 1 April 2015, and
b
for capital gains tax purposes, in relation to disposals on or after 6 April 2015.