Although the legislation uses the concept of ‘the total of any disposal receipts’ (which it abbreviates to ‘TDR’), there is no definition of this term. However, there is a definition of ‘disposal receipt’. In other words, disposal receipts are converted to TDR simply by an arithmetic process rather than by any sleight of legislation.

In most cases, the disposal value for capital allowances purposes will simply be the sale proceeds. The position can be more complex, however, and even in the rewritten legislation of CAA 2001, the sections dealing with disposal events and disposal values need to be considered with some care.

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