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Legislation
Capital Allowances Act 2001

Chapter 9 Short-life assets

  • Section 83 Meaning of “short-life asset”
  • Section 84 Cases in which short-life asset treatment is ruled out
  • Section 85 Election for short-life asset treatment: procedure
  • Section 86 Short-life asset pool
  • Section 87 Short-life assets provided for leasing
  • Section 88 Sales at under-value
  • Section 89 Disposal to connected person
  1. Chapter 9 · Short-life assets
  2. Short-life assets provided for leasing

Section 87 | Short-life assets provided for leasing

From legislation.gov.uk

(1)This section applies if—

(a)plant or machinery is a short-life asset on the basis that it has been provided for leasing but will be used within the designated period for a qualifying purpose (see item 5 of the Table in section 84),

(b)in a chargeable period ending on or before the relevant cut-off, the short-life asset begins to be used otherwise than for a qualifying purpose, andF1

(c)the time when it begins to be so used falls within the first 8 years of the designated period.F2

(2)If this section applies—

(a)the short-life asset pool ends without a final chargeable period,

(b)the available qualifying expenditure in the pool is allocated to the main pool for the chargeable period in which the asset begins to be used otherwise than for a qualifying purpose, and

(c)the asset ceases to be a short-life asset.

Notes

  1. F1

    Word in s. 87(1)(b) substituted (19.7.2011) by Finance Act 2011 (c. 11), s. 12(4)(a)

  2. F2

    Words in s. 87(1)(c) substituted (19.7.2011) by Finance Act 2011 (c. 11), s. 12(4)(b)

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