63 Cases in which disposal value is nilU.K.
This section has no associated Explanatory Notes
(1)If a person disposes of plant or machinery by way of gift in circumstances such that there is a charge to tax under [ITEPA 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 [charitable trust ...],
[(aa)to a charitable company ...,
(ab)to a registered club within the meaning of Chapter 9 of Part 13 of CTA 2010 (community amateur sports clubs),]
(b)to a body listed in [section 468 of CTA 2010] (various heritage bodies and museums), or
(c)for the purposes of a designated educational establishment within the meaning of [section 110 of ITTOIA 2005 or] [section 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 [UK] [property] business,
(c)a [UK furnished] holiday lettings business,
(d)an [ordinary overseas] property business, ...
[(da)an EEA furnished holiday lettings business, or]
(e)a profession or vocation.
(4)Subsection (2) [—
(a)]needs to be read with [section 109 of ITTOIA 2005 and] [section 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)[, and
(b)is subject to section 809ZM of ITA 2007 and section 939F of CTA 2010 (removal of tax relief in respect of tainted charity donations etc).]
(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
Modifications etc. (not altering text)