OT15100 - PRT: Tariff and Disposal Receipts

Qualifying Assets, OTA83/S8

Under OTA83/S6-7, the charge to tariff (see OT15025) and disposal receipts (see OT15060) is linked to ‘qualifying assets’.

A qualifying asset in relation to a participator in a taxable field is defined in OTA83/S8(1) and OTA83/S8(2) as an asset

1. which is not a mobile asset or is a mobile asset dedicated to that field and
2. on which expenditure incurred by the participator is allowable or has been allowed for that field under OTA83/S3 (see OT11050), OTA75/S4 (see OT11100) or OTA75/S3 (see OT09025)

Where the expenditure is allowable or allowed under OTA75/S3 the asset is not a qualifying asset unless, at the time the expenditure was incurred, the asset was expected to be a long- term asset see OT11025.

But under OTA83/S8(1A), the following assets are not qualifying assets:

1. land or an interest in land
2. a building or structure which is situated on land (unless it is within the categories in OTA75/S3(4)(c)(i-iv), see OT09500).