Capital Allowances Act 2001 section 112

Election regarding sale consideration

Section 112 modifies the rules on electing to treat a sale as being for an alternative amount, specifically for certain older transfers involving non-UK resident parties.

• Modifies section 569(3) for qualifying transfers by substituting a revised condition relating to non-UK resident parties
• The revised condition applies where a party is not UK resident at the time of transfer and no relevant capital allowance or charge arises for that party from the transfer
• Applies only to transfers that took place before 16th March 1993, or under contracts entered into before that date
• Also covers transfers made to fulfil obligations under a pre-16th March 1993 contract