Capital Allowances Act 2001 section 68

Disposal value on cessation of notional ownership

Section 68 sets out how to calculate the disposal value that must be brought into account when a person's notional ownership of plant or machinery (under a hire-purchase or similar contract) comes to an end.

• When notional ownership of plant or machinery ceases under section 67(4), a disposal value must be brought into account in the capital allowances computation.
• If the asset was brought into use before cessation, the disposal value is the total of any relevant capital sums plus any capital expenditure that was deemed to have been incurred under section 67(3) but was never actually paid.
• If the asset was never brought into use before cessation, the disposal value is simply the total of any relevant capital sums received or receivable.
• These rules are subject to the anti-avoidance provisions in section 229.