Capital Allowances Act 2001 section 66

List of provisions outside this Chapter about disposal values

Section 66 provides a reference list of other provisions found elsewhere in Part 2 of the Act that require a disposal value to be brought into account, supplementing the main disposal value rules in Chapter 5.

• When plant or machinery is disposed of, a disposal value must be brought into the capital allowances pool, potentially triggering a balancing charge or balancing allowance.
• The main disposal value rules are in Chapter 5, but numerous other chapters contain their own specific disposal value provisions covering specialist situations such as hire-purchase, leasing, fixtures, ships, software, and oil production contracts.
• Several of the listed provisions are anti-avoidance measures that modify the normal disposal value rules where transactions are structured to obtain a tax advantage, including cases involving special rate assets, cars, fixtures, and leased plant or machinery.
• Section 66 acts as a signposting provision, directing the reader to all sixteen sets of disposal value rules scattered across Part 2, ensuring that none is overlooked when calculating allowances or charges on a disposal event.