CG12738 - Part-disposals: restriction of losses: capital allowances

TCGA92/S41

In the case of an asset subject to capital allowances, the apportionment under CG12731 should be made first and capital allowances taken into account only to the extent that they relate to the part being disposed of. If there has been a previous part- disposal at a loss and on that disposal capital allowances have been used to restrict the allowable loss, then only the balance of the capital allowances should be used to restrict any further loss on the disposal of the asset in full or in part, see CG15400+.