The accounting period of the lessor company is brought to a
close on the relevant day, the day of the sale etc of the company.
A new accounting period, and so new chargeable period, starts on
the following day. The normal rules for computing writing down
allowances, and so tax written down values, apply,
The TWDV amount is found by adding together:
carried forward into the new chargeable period under section 59
CAA 2001.
This figure is adjusted to exclude any amounts which relate
to plant or machinery acquired on the relevant day unless it was
acquired from an associated company. This adjustment ensures that
there is consistency between assets reflected in the PM figure and
assets reflected in the TWDV figure.
See the example at
BLM80535.
