CAA01/S61 (2) – (5), S62 & S63

These are the disposal values for the various disposal events in CA23240. The disposal values are subject to the limits detailed below. For disposal values in relation to fixtures, see CA26700.

Disposal event Disposal value
Sale of the asset Net proceeds of sale (see CA11540) plus any insurance money received as a result of an event affecting the sale price and any other capital compensation received
Sale of the asset at less than market value Market value unless there is a charge under ITEPA on the buyer or the buyer can claim PMAs or RDAs on the asset and the buyer is not a dual resident investing company connected with the seller
Demolition or destruction of the asset Net amount received for the remains of the asset together with any insurance money received for the demolition or destruction and any other capital compensation
Permanent loss of the asset not by demolition or destruction Any insurance money received for the loss and any other capital compensation
Abandonment of an asset used for mineral exploration and access Any insurance money received for the abandonment and any other capital compensation
Permanent discontinuance of the qualifying activity before an event listed above The disposal value for the event
Commencement of the term of a long funding finance lease CA23850 of an asset The amount which would be recognised as the lessor's net investment in the lease if accounts were prepared in accordance with generally accepted accounting practice on the date on which the lessor's net investment in the lease is first recognised in its books or other financial records
Commencement of the term of a long funding operating lease of an asset CA23850 For leases commencing before 13 November 2008, the amount which would be recognised as the lessor's net investment in the lease if accounts were prepared in accordance with generally accepted accounting practice on the date on which the lessor's net investment in the lease is first recognised in its books or other financial records. For leases commencing on or after 13 November 2008, the greater of (a) the market value of the plant or machinery at the commencement of the term of the lease; and (b) the qualifying lease payments (as defined at s.61(5A) CAA 2001).
A disposal event arising under CTA09/S15A in relation to a company to which an election under CTA09/S18A has effect (INTM281020 Companies with foreign permanent establishments) The ‘transition value’ (this being such amount as gives rise to neither a balancing allowance nor a balancing charge).
Any other event Market value

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.