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HMRC internal manual

Capital Gains Manual

Capital allowances made: meaning: plant and machinery

TCGA92/S41 (7)

Where the disposal is of plant or machinery, and allowances or charges have been made under Part II of the Capital Allowances Act 2001 and neither

  • CAA01/Ss205 - 208 (assets used only partly for trade purposes), nor
  • CAA01/Ss209 - 212 (partial depreciation subsidies)

applies, the capital allowances to be taken into account under Section 41 are to be taken as equal to the difference between

  • the capital expenditure incurred, or treated as incurred, under the Capital Allowances Act 2001 and
  • the disposal value required to be brought into account in respect of the plant or machinery.

(If CAA01/Ss205 - 208 or CAA01/Ss209 - 212 applies then CG15412 applies because the assets are not part of the main capital allowances pool.)