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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Capital allowances: plant and machinery

TCGA92/S41(7) - Plant and machinery

TCGA92/S41(7) applies where:

  • the disposal is of plant or machinery, and
  • the allowances or charges have been made on the allowable expenditure under CAA01/PART2, and
  • neither CAA01/CHAPT15 (assets used only partly for trade purposes), nor CAA01/CHAPT16 (partial depreciation subsidies) applies.

In these circumstances the capital allowances are treated as the difference between:

  • the capital expenditure incurred, or treated as incurred, on the plant or machinery under CAA01/PART2, and
  • the disposal value required to be brought into account in respect of the plant or machinery.

If CAA01/CHAP15 (assets used only partly for trade purposes) or CAA01/CHAPT16 applies (partial depreciation subsidies), then the assets will have been included in a single asset pool for capital allowances.  The capital allowances that have been or may be made are calculated as per section 41(6) (see CG15410).