63 Cases in which disposal value is nilU.K.
(1)If a person disposes of plant or machinery by way of gift in circumstances such that there is a charge to tax under [F1ITEPA 2003], the disposal value of the plant or machinery is nil.
(2)If a person carrying on a relevant qualifying activity makes a gift of plant or machinery used in the course of the activity—
(a)to a charity within the meaning of section 506 of ICTA (charities: qualifying and non-qualifying expenditure),
(b)to a body listed in section 507(1) of ICTA (various heritage bodies and museums), or
(c)for the purposes of a designated educational establishment within the meaning of [F2section 110 of ITTOIA 2005 or] [F3section 106 of CTA 2009] (gifts to educational establishments),
the disposal value of the plant or machinery is nil.
(3)In subsection (2) “relevant qualifying activity” means a qualifying activity consisting of—
(a)a trade,
(b)an ordinary [F4property] business,
(c)a furnished holiday lettings business,
(d)an overseas property business, or
(e)a profession or vocation.
(4)Subsection (2) needs to be read with [F5section 109 of ITTOIA 2005 and] [F6section 108 of CTA 2009] (which provide for a charge to tax if subsection (2) applies in circumstances in which the donor or a connected person receives a benefit attributable to the gift).
(5)If expenditure is treated under section 27(2) (expenditure on thermal insulation, safety measures, etc.) as having been incurred on plant or machinery, the disposal value of the plant or machinery is nil.
Textual Amendments
F1 Words in s. 63(1) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1) , s. 723 , Sch. 6 para. 250 (with Sch. 7 )
F2 Words in s. 63(2)(c) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5) , s. 883(1) , Sch. 1 para. 535(2) (with Sch. 2 )
F3Words in s. 63(2)(c) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 482(2) (with Sch. 2 Pts. 1, 2)
F4 Word in s. 63(3)(b) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5) , s. 883(1) , Sch. 1 para. 535(3) (with Sch. 2 )
F5 Words in s. 63(4) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5) , s. 883(1) , Sch. 1 para. 535(4) (with Sch. 2 )
F6Words in s. 63(4) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 482(3) (with Sch. 2 Pts. 1, 2)
Modifications etc. (not altering text)
C1S. 63(2) modifed (with effect as mentioned in s. 58(4) of the amending Act) by Finance Act 2002 (c. 23), s. 58, Sch. 18 para. 9(3)(c)