B3.704 Sale, destruction etc of assets
Particular provisions apply where an asset representing R&D expenditure ceases to be owned by the person who incurred the expenditure, or is demolished or destroyed whilst in his ownership. In keeping with its general approach, a person is required to bring a disposal value into account in respect of qualifying expenditure incurred by him if:
(a) he ceases to own an asset representing the expenditure; or
(b) an asset representing the expenditure is demolished or destroyed at a time when he owns the asset1.
The disposal value to be brought into account depends on the 'disposal event', ie an event of a kind that requires a disposal value to be brought into account2.
References to an asset include a part of an asset3.
Where the disposal event is the sale of the asset at not less than market value, the disposal value is the net proceeds of the sale. Where it is the demolition or destruction of the asset, the disposal value is the net amount received for the remains of the asset, together with any insurance money received in respect of the demolition or destruction and any other compensation consisting of capital sums. Where the disposal event is of some other kind, the disposal value is the market value of the asset at the time of the event4.