Capital Allowances Act 2001 section 430

Disposal of asset, etc.

Section 430 sets out the circumstances in which a person becomes entitled to a balancing allowance in relation to qualifying expenditure on assets used in a mineral extraction trade, where those assets are disposed of or otherwise leave the trade.

• A balancing allowance arises when assets on which qualifying expenditure was incurred are disposed of, or permanently cease to be used for the mineral extraction trade, during a chargeable period.
• A balancing allowance also arises where the person permanently loses possession of the assets during a chargeable period.
• The allowance is triggered if the assets cease to exist — for example, through destruction or dismantling — during the chargeable period.
• The allowance similarly applies if the assets begin to be used wholly or partly for purposes other than the person's mineral extraction trade.