Part 5Mineral extraction allowances
Chapter 6Allowances and charges
Disposal values
423Sections 421 and 422: amount of disposal value to be brought into account
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—
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—
|
2. Sale of the asset where—
| 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—
|
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.