Capital Allowances Act 2001 section 451

Sales: time of cessation of ownership

Section 451 defines when a person is treated as ceasing to own an asset in the case of a sale, for the purposes of the mineral extraction allowances rules.

• This rule applies whenever Part 5 of the Act refers to the time a person ceases to own an asset
• In the case of a sale, cessation of ownership occurs at whichever happens first: completion or the giving of possession
• Completion means the formal legal transfer of the asset; possession means the buyer physically takes control of it
• The earlier of these two dates is the relevant date for calculating mineral extraction allowances and balancing adjustments