Capital Allowances Act 2001 (c. 2)

Modifications etc. (not altering text)

C1 S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7

Part 5 U.K. Mineral extraction allowances

Chapter 6 U.K. Allowances and charges

Cases in which a person is entitled to a balancing allowance U.K.

430 Disposal of asset, etc. U.K.

(1) A person’s entitlement to an allowance for a chargeable period is to a balancing allowance if—

(a) the qualifying expenditure was incurred on the provision of any assets, and

(b) in that chargeable period any of those assets—

(i) is disposed of, or

(ii) otherwise permanently ceases to be used by him for the purposes of the mineral extraction trade.

(2) A person’s entitlement to an allowance for a chargeable period is to a balancing allowance if any of the following events occurs in that chargeable period in relation to assets representing the qualifying expenditure—

(a) the person loses possession of the assets in circumstances where it is reasonable to assume that the loss is permanent;

(b) the assets cease to exist as such (as a result of destruction, dismantling or otherwise);

(c) the assets begin to be used wholly or partly for purposes other than those of the mineral extraction trade carried on by the person.