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Changes over time for: Section 423


Timeline of Changes
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Status:
Point in time view as at 06/04/2024.
Changes to legislation:
Capital Allowances Act 2001, Section 423 is up to date with all changes known to be in force on or before 07 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

Changes to Legislation
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423 Sections 421 and 422: amount of disposal value to be brought into accountU.K.
This section has no associated Explanatory Notes
(1)The disposal value to be brought into account under section 421 or 422 depends on the event requiring it to be brought into account, as shown in the Table—
Table
Disposal value for sections 421 and 422
1. Event | 2. Disposal value |
---|
1. Sale of the asset, except in a case where item 2 applies. | The net proceeds of the sale, together with—
(a) any insurance money received in respect of the asset as a result of an event affecting the price obtainable on the sale, and
(b) any other compensation of any description so received, so far as it consists of capital sums.
|
2. Sale of the asset where—
(a) the sale is at less than market value,
(b) there is no charge to tax under [ITEPA 2003], and
(c) the condition in subsection (3) is met by the buyer.
| The market value of the asset at the time of the sale. |
3. Demolition or destruction of the asset. | The net amount received for the remains of the asset, together with—
(a) any insurance money received in respect of the demolition or destruction, and
(b) any other compensation of any description so received, so far as it consists of capital sums.
|
4. Permanent loss of the asset otherwise than as a result of its demolition or destruction. | Any insurance money received in respect of the loss and, so far as it consists of capital sums, any other compensation of any description so received. |
5. Permanent discontinuance of the trade followed by the occurrence of an event within any of items 1 to 4. | The disposal value for the item in question. |
6. Any event not falling within any of items 1 to 5. | The market value of the asset at the time of the event. |
(2)The amounts referred to in column 2 of the Table are those received by the person required to bring the disposal value into account.
(3)The condition referred to in item 2 of the Table is met by the buyer if—
(a)the buyer’s expenditure on the acquisition of the asset cannot be qualifying expenditure under Part 2 or 6 (plant and machinery and research and development allowances), or
(b)the buyer is a dual resident investing company which is connected with the seller.
Textual Amendments
Modifications etc. (not altering text)
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