Capital Allowances Act 2001 section 421

Disposal of, or ceasing to use, asset

Section 421 requires a disposal value to be brought into account when a mineral extraction asset is disposed of or permanently ceases to be used for the purposes of the trade.

• Applies where qualifying expenditure has been incurred on providing assets, including the construction of works, for a mineral extraction trade
• Triggered when any such asset is disposed of or permanently ceases to be used for the purposes of the mineral extraction trade
• Cessation of use includes both discontinuance of the trade and any other reason the asset is no longer used
• The disposal value of the asset must be brought into account in the chargeable period in which the disposal or cessation occurs