Section 825C | Plant or machinery used for other qualifying activities

(1)This section applies if—

(a)disposal receipts fall to be brought into account in a pool by virtue of section 825A because of a disposal event, and

(b)after that disposal event, the relevant individual brings any of the plant or machinery in that pool into use for the purposes of another activity.

(2)Section 13 of CAA 2001 has effect as if the total amount of the notional expenditure which the individual is treated under that section as having incurred, for all of the plant or machinery in that pool which is brought into use for the purposes of the other activity, were the smaller of—

(a)the total market value of that plant or machinery on the day on which it is brought into use for the purposes of that other activity, and

(b)an amount equal to the disposal receipts brought into account in the pool as mentioned in subsection (1)(a).

(3)Subsection (2) does not apply to plant or machinery brought into use for the purposes of another activity if—

(a)the individual is treated by virtue of section 825B as having already brought that plant or machinery into use for the purposes of the care business, or

(b)this section has already applied to that plant or machinery since the disposal event.

(4)The amount mentioned in subsection (2)(b) must be reduced by the appropriate sum if some plant or machinery in the pool is brought into use for the purposes of another activity after —

(a)the individual is treated by virtue of section 825B as having brought other plant or machinery in that pool into use for the purposes of the care business, or

(b)this section has applied to other plant or machinery in that pool since the disposal event.

(5)The appropriate sum is—

(a)in a case within paragraph (a) of subsection (4), the total amount of expenditure which the individual is treated by virtue of section 825B as having incurred on the provision of that other plant or machinery, and

(b)in a case within paragraph (b) of that subsection, the total amount of the notional expenditure (as determined in accordance with subsection (2)) which the individual is treated under section 13 of CAA 2001 as having incurred on the provision of that other plant or machinery since the disposal event.