Capital Allowances Act 2001 section 420

Meaning of "disposal receipt"

Section 420 defines the term "disposal receipt" as used in the mineral extraction allowances provisions, identifying the sources from which a disposal value may arise that must be brought into account.

• A disposal receipt is a disposal value that a person is required to bring into account when calculating mineral extraction allowances and charges.
• Disposal values may arise under sections 421 to 425, which cover events such as disposing of or ceasing to use an asset, and the receipt of capital sums.
• Disposal values may also arise under section 614BS of the Income Tax Act 2007 or section 918 of the Corporation Tax Act 2010, dealing with finance leases where expenditure has been taken into account under Part 2, 5 or 8 of the Capital Allowances Act 2001.
• Disposal receipts feed directly into the calculations for entitlement to allowances, the amount of those allowances or charges, and the determination of unrelieved qualifying expenditure under sections 417 to 419.