Capital Allowances Act 2001 section 64

Case in which no disposal value need be brought into account

Section 64 explains when a person does not need to bring a disposal value into account in their capital allowances pool, and sets out a special anti-avoidance rule for connected person transactions.

• No disposal value is required if the qualifying expenditure on the plant or machinery has never been claimed in determining available qualifying expenditure in the pool
• A special rule applies where plant or machinery was acquired through a transaction (or series of transactions) between connected persons, and one of those connected persons has already been required to bring a disposal value into account
• Under the connected persons rule, if a disposal event occurs and the acquirer has never claimed the expenditure, the normal exemption is overridden and the expenditure is treated as allocated to the appropriate pool in the period of disposal
• Expenditure is considered "taken into account in a claim" if it has been included in a tax return, an amendment to a tax return, or any other claim for capital allowances