B3.110 Capital allowances―apportionment on composite sales
The provisions described in this article apply to sales, exchanges and surrenders in relation to all the codes of allowances for capital expenditure.
Any reference to the sale of any property includes a reference to the sale of that property together with any other property. Where an item of property is sold together with other property, so much of the net proceeds of the sale of the whole property as, on a just and reasonable apportionment, is attributable to that item, is deemed to be the net proceeds of the sale of that item, and the expenditure incurred on the provision or the purchase of that item is to be treated as so much of the consideration given for all the property as, on a just and reasonable apportionment, is attributable to that item1. For this purpose, all the property which is sold in pursuance of one bargain is deemed to be sold together, notwithstanding that separate prices are, or purport to be, agreed for separate items of that property, or that there are, or purport to be, separate sales of separate items2. This rule applies, with the necessary adaptations, in relation to other insurance, or compensation moneys as it applies in relation to the net proceeds of the sales3.
If the sale relates to plant and machinery fixtures, the parties to the sale will normally enter into a joint election under CAA 2001, s 198 to agree the seller's disposal value and as the