Part 5 Mineral extraction allowances
Chapter 6 Allowances and charges
Cases in which a person is entitled to a balancing allowance
431BF1Disposal value: no allowance/no charge cases
1
If—
a
an election under section 18A of CTA 2009 has effect in relation to a company, and
b
the operation of sections 431A and 421(1)(b)(ii) and (2) requires the company to bring the disposal value of an asset into account,
the disposal value is such an amount as gives rise to neither a balancing allowance nor a balancing charge.
2
Subsection (1) does not apply if—
a
the company's qualifying expenditure in respect of the asset exceeds £5 million,
b
the company has claimed any capital allowance in respect of any of that expenditure, and
c
the company has, at any time in a relevant accounting period, used the asset otherwise than for the purposes of a permanent establishment outside the United Kingdom.
3
In subsection (2)(c) “relevant accounting period” means an accounting period ending before, but ending not more than 6 years before, “the relevant day” as defined by section 18F of CTA 2009.