Capital Allowances Act 2001 section 104

Disposal value of long-life assets

Section 104 prevents tax avoidance arrangements that are designed to accelerate capital allowances on long-life assets by requiring a disposal value to be brought into account in certain circumstances.

• Where a long-life asset is disposed of as part of an arrangement intended to obtain a tax advantage, a disposal value must be brought into account
• The rule targets schemes designed to accelerate the rate at which capital allowances are claimed on long-life assets
• The disposal value to be brought into account is based on the notional written-down value of the asset, calculated in a specific manner
• A "tax advantage" for these purposes has the meaning given by section 577(4) of the Capital Allowances Act 2001