Capital Allowances Act 2001 section 60

Meaning of "disposal receipt" and "disposal event"

Section 60 defines the key terms "disposal receipt" and "disposal event" for the purposes of the plant and machinery allowances rules, and establishes that only the first disposal event triggers a disposal value in any given capital allowances pool.

• A "disposal receipt" is a disposal value that must be brought into account under the main disposal provisions (sections 61–63), the additional provisions listed in section 66, or certain provisions in the Income Tax Act 2007 and Corporation Tax Act 2010 — subject to exemptions in sections 64 and 264(3) where no disposal value is required.
• A "disposal event" is any event that triggers the requirement to bring a disposal value into account for plant and machinery allowances purposes.
• Where qualifying expenditure has been allocated to a capital allowances pool and more than one disposal event occurs for the same item of plant or machinery, only the first disposal event requires a disposal value to be recognised in that pool.
• Certain events are excluded from the "first event only" rule: those relating to computer software (section 72), deferred balancing charges on ships (sections 140 and 143), and additional VAT rebates (section 238(2)) — meaning these can still generate disposal values even if an earlier disposal event has already been accounted for.