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Section 63 | Cases in which disposal value is nil

From legislation.gov.uk

(1)If a person disposes of plant or machinery by way of gift in circumstances such that there is a charge to tax under ITEPA 2003, the disposal value of the plant or machinery is nil.F1

(2)If a person carrying on a relevant qualifying activity makes a gift of plant or machinery used in the course of the activity—

(a)to a charitable trust ...,F2F3

(aa)to a charitable company ...,F4F5

(ab)to a registered club within the meaning of Chapter 9 of Part 13 of CTA 2010 (community amateur sports clubs),F4

(b)to a body listed in section 468 of CTA 2010 (various heritage bodies and museums), orF6

(c)for the purposes of a designated educational establishment within the meaning of section 110 of ITTOIA 2005 or section 106 of CTA 2009 (gifts to educational establishments),F7F8

the disposal value of the plant or machinery is nil.

(3)In subsection (2) “relevant qualifying activity” means a qualifying activity consisting of—

(a)a trade,

(b)a UK property business,F9F10F11

(c)RepealedF12

(d)an ... overseas property business, ...F13F14F15

(da)... orF16

(e)a profession or vocation.

(4)Subsection (2) —F17

(a)needs to be read with section 109 of ITTOIA 2005 and section 108 of CTA 2009 (which provide for a charge to tax if subsection (2) applies in circumstances in which the donor or a connected person receives a benefit attributable to the gift), andF17F18F19F20

(b)is subject to sections 809ZM and 809ZMB of ITA 2007 and sections 939F and 939FB of CTA 2010 (removal of tax relief in respect of tainted charity donations etc).F20F21F22

(5)If expenditure is treated under section 27(2) (expenditure on thermal insulation, safety measures, etc.) as having been incurred on plant or machinery, the disposal value of the plant or machinery is nil.