TCGA92/S42(3) & (4)

TCGA92/S42(3) & (4) will apply on the part disposal of an asset, where the expenditure on the asset has qualified for any capital allowance or renewals allowance. Any apportionment required by section 42 is to be made before operating the loss restriction in TCGA92/S41 (see CG15410).

Any loss accruing on a subsequent disposal or part-disposal of the asset is restricted to the extent that any capital allowance or renewal allowance has not already been used to restrict an earlier loss.

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.