C1C2C4C3C5C8C6C7C9Part II Machinery and Plant
Pt. II modified (19.9.1994) by Coal Industry Act 1994 (c. 21), s. 68(4), Sch. 4 para. 22; S.I. 1994/2189, art. 2, Sch.
Pt. 2 modified (8.11.1995) by Atomic Energy Authority Act 1995 (c. 37), Sch. 3 para. 20
Pt. 2 modified (8.11.1995) by Atomic Energy Authority Act 1995 (c. 37), Sch. 3 para. 16
Pt. 2 modified (24.7.1996) by Broadcasting Act 1996 (c. 55), s. 149(1)(f), Sch. 7 para. 14(1) (with Sch. 7 para. 14(2))
Pt. 2 restricted (24.7.1996) by Broadcasting Act 1996 (c. 55), s. 149(1)(f), Sch. 7 para. 16
Pt. 2 modified (24.7.1996) by Broadcasting Act 1996 (c. 55), s. 149(1)(f), Sch. 7 para. 15(2)
Pt. 2 modified (24.7.1996) by Broadcasting Act 1996 (c. 55), s. 149(1)(f), Sch. 7 para. 15(3)
Pt. 2 modified (with application in accordance with Sch. 12 para. 11(1) of the amending Act) by Finance Act 1997 (c. 16), Sch. 12 para. 11(3)(b) (with Sch. 12 paras. 13, 14)
C2C9Chapter VI Fixtures
59AF1Disposal values in avoidance cases.
1
If, in a case where machinery or plant has been treated by virtue of this Chapter as belonging to any person (“the charged person”) in consequence of his incurring any expenditure—
a
an event occurs by reason of which a disposal value of that machinery or plant is to be brought into account by the charged person in accordance with section 24,
b
the amount of the disposal value to be so brought into account would (but for this section) be less than the notional written-down value of the machinery or plant, and
c
the event is comprised in, or occurs in pursuance of, any scheme or arrangement which has avoidance as its main object, or as one of its main objects,
this Part shall have effect in relation to the charged person as if the amount of the disposal value to be brought into account were equal to the notional written-down value of the machinery or plant.
2
In this section “the notional written-down value”, in relation to any machinery or plant, means the amount which, if—
a
it were the disposal value falling to be brought into account as mentioned in subsection (1) above, and
b
the assumptions set out in subsection (3) below were made,
would give rise to neither a balancing allowance nor a balancing charge for the chargeable period for which that disposal value is to be brought into account.
3
Those assumptions are—
a
that expenditure on the provision of the machinery or plant were the only expenditure ever taken into account in determining the charged person’s qualifying expenditure for the purposes of section 24; and
b
that the full amount of every allowance to which that person was entitled in respect of that expenditure had been made to him.
4
The reference in subsection (1) above to avoidance is a reference to—
a
the obtaining under this Part for the charged person of an allowance or deduction or of a greater allowance or deduction, or
b
the avoidance or reduction of a charge under this Part on the charged person.
Pt. II (ss. 22–83) modified by Finance Act 1990 (c. 29), s. 87(3)(4)