Capital Allowances Act 2001 section 218ZB

Disposal values: section 215

Section 218ZB requires the disposal value of plant or machinery to be adjusted where a payment arises under an anti-avoidance arrangement caught by section 215, and that payment would otherwise escape being reflected in the disposal value, thereby conferring a tax advantage.

• Where section 215 applies and a payment is made under the avoidance arrangement that would not normally be included in the disposal value, an adjustment is required
• The disposal value must be increased in a just and reasonable manner to include an amount representing the portion of the payment that would cancel out the tax advantage
• "Payment" is defined broadly to include any benefit, assumption of liability, and any other transfer of money or money's worth
• The provision ensures that disposal values properly reflect economic reality and prevents tax advantages being obtained through payments structured to fall outside the normal disposal value rules