Related Commentary  

423(1)  The disposal value to be brought into account under section 421 or 422 depends on the event requiring it to be brought into account, as shown in the Table–

TABLE
DISPOSAL VALUE FOR SECTIONS 421 AND 422

1. Event 2. Disposal value
1. Sale of the asset, except in a case where item 2 applies. The net proceeds of the sale, together with–
 (a) any insurance money received in respect of the asset as a result of an event affecting the price obtainable on the sale, and
 (b) any other compensation of any description so received, so far as it consists of capital sums.
2. Sale of the asset where– The market value of the asset at the time of the sale.
(a) the sale is at less than market value,
 (b) there is no charge to tax under ITEPA 2003, and
 (c) the condition in subsection (3) is met by the buyer.
3. Demolition or destruction of the asset. The net amount received for the remains of the asset, together with–
(a) any insurance money received in respect of the demolition or destruction, and
(b) any other compensation of any description so received, so far as it consists of capital sums.
4. Permanent loss of the asset otherwise than as a result of its demolition or destruction. Any insurance money received in respect of the loss and, so far as it consists of capital sums, any other compensation of any description so received.
5. Permanent discontinuance of the trade followed by the occurrence of an event within any of items 1 to 4. The disposal value for the item in question.
6. Any event not falling within any of items 1 to 5. The market value of the asset at the time of the event.

423(2)  The amounts referred to in column 2 of the Table are those received by the person required to bring the disposal value into account.

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