CG15450 - Capital allowances: wasting assets

TCGA92/S44 (1) (c) & TCGA92/S45 (1)

TCGA92/S45 (1) provides that no chargeable gain (or allowable loss) shall accrue on the disposal of an asset (or an interest in an asset) which

• is tangible moveable property (a chattel), and
• is a wasting asset, see CG76700, and
• has never qualified for capital allowances.

TCGA92/S44 (1)(c) provides that plant and machinery must be treated as a wasting asset. Therefore if the plant or machinery is

• a chattel, and
• has never qualified for capital allowances,

any gain is exempt by virtue of TCGA92/S45 (1). But note that if the plant and machinery is

• a chattel, and
• the disposal consideration is less than £6,000,

any gain is exempt by virtue of Section 262 (chattel exemption) whether or not the asset qualified for capital allowances, see CG76500+.