Corporation Tax Act 2010 section 403

"TWDV" in section 399

Section 403 defines how to calculate the "TWDV" (tax written-down value) figure used in the income formula in section 399, which determines the basic amount of income arising on a sale of a lessor's leasing business.

• TWDV is the total of unrelieved qualifying expenditure carried forward from the previous chargeable period into the new chargeable period across all capital allowance pools — single asset pools, class pools, and the main pool.
• The new chargeable period is the accounting period of the relevant company that begins on the day after the relevant day (i.e. the day of the sale event).
• Any "relevant new expenditure" must be stripped out of the TWDV calculation — this means expenditure on plant or machinery acquired on the relevant day (unless acquired from an associated company) and expenditure incurred on the relevant day for plant or machinery acquired before that day.
• The term "acquired" includes bringing plant or machinery into use, or making it available for use, for the first time for business purposes, and extends to anything treated as acquired or treated as incurred.