Section 45 | Exemption for certain wasting assets.
From legislation.gov.uk
(1)Subject to the provisions of this section, no chargeable gain shall accrue on the disposal of, or of an interest in, an asset which is tangible movable property and which is a wasting asset.
(2)Subsection (1) above shall not apply to a disposal of, or of an interest in, an asset—
(a)if, from the beginning of the period of ownership of the person making the disposal to the time when the disposal is made, the asset has been used and used solely for the purposes of a trade, profession or vocation and if that person has claimed or could have claimed any capital allowance in respect of any expenditure attributable to the asset or interest under paragraph (a) or paragraph (b) of section 38(1); or
(b)if the person making the disposal has incurred any expenditure on the asset or interest which has otherwise qualified in full for any capital allowance.
(3)In the case of the disposal of, or of an interest in, an asset which, in the period of ownership of the person making the disposal, has been used partly for the purposes of a trade, profession or vocation and partly for other purposes, or has been used for the purposes of a trade, profession or vocation for part of that period, or which has otherwise qualified in part only for capital allowances—
(a)the consideration for the disposal, and any expenditure attributable to the asset or interest by virtue of section 38(1)(a) and (b), shall be apportioned by reference to the extent to which that expenditure qualified for capital allowances, and
(b)the computation of the gain shall be made separately in relation to the apportioned parts of the expenditure and consideration, and
(c)subsection (1) above shall not apply to any gain accruing by reference to the computation in relation to the part of the consideration apportioned to use for the purposes of the trade, profession or vocation, or to the expenditure qualifying for capital allowances.
(3A)But subsection (3) does not apply in the case of a disposal in relation to which subsection (3B) disapplies subsection (1).F1
(3B)Subsection (1) does not apply to a disposal of, or of an interest in, an asset if—F1
(a)at any time in the period of ownership of the person making the disposal, the asset is used for the purposes of a trade, profession or vocation carried on by another person,F1
(b)as a result of that use, the asset becomes plant,F1
(c)but for the asset therefore being regarded under section 44(1)(c) as having a predictable life of less than 50 years, the disposal would not be of, or of an interest in, a wasting asset, andF1
(d)the disposal is not within subsection (3C).F1
(3C)A disposal of, or of an interest in, an asset is within this subsection if the asset is plant used for the purpose of leasing under a long funding lease and—F1
(a)the disposal takes place after the commencement of the term of the lease but before the termination of the lease, orF1
(b)the disposal is the deemed disposal of the asset under section 25A(3)(a) on the termination of the lease.F1
(3D)Section 25A(5) applies for the purposes of subsection (3C).F1
(4)Subsection (1) above shall not apply to a disposal of commodities of any description by a person dealing on a terminal market or dealing with or through a person ordinarily engaged in dealing on a terminal market.