Where the leased asset qualifies for machinery and plant
capital allowances the major lump sum is taken into account as a
'disposal value' (FA97/Sch12/Para11(3)). This is subject to rules
which restrict the disposal value to, essentially, the cost of the
asset, see
BLM73040.
Similarly, the major lump sum, limited to cost where
necessary, is treated as a disposal value in the computation of the
following kinds of capital allowance:
