Capital Allowances Act 2001 section 171

Disposal values on cessation of ownership

Section 171 sets out the disposal value to be brought into account when a person who was treated as owning plant or machinery under the mining and oil industries provisions ceases to be treated as the owner.

• Applies where a person was treated as owning plant or machinery under the contractor or participator provisions for mining and oil industries
• The person must have ceased to be treated as the owner solely because of those same provisions
• If the person receives capital compensation on cessation, the disposal value is the amount of that compensation
• If no capital compensation is received, the disposal value is nil