Commentary

C2.901A Exemption for certain wasting assets

Capital gains tax
Capital gains tax | Commentary

C2.901A Exemption for certain wasting assets

Capital gains tax | Commentary

C2.901A Exemption for certain wasting assets

No chargeable gain or allowable loss accrues on the disposal of (or of an interest in) an asset which is tangible movable property and which is a wasting asset1. This does not apply to a disposal of commodities of any description by a person dealing on a terminal market or dealing with or through a person ordinarily engaged in dealing on a terminal market2.

The exemption does not apply to a disposal of, or of an interest in, an asset:

  1.  

    (a)     if, throughout the period of ownership of the asset by the person making the disposal, the asset has been used solely for the purposes of a trade, profession or vocation and that person has claimed or could have claimed any capital allowance for expenditure on the acquisition or enhancement of the asset3, or

  2.  

    (b)     if the person making the disposal has incurred any expenditure on the asset or interest which has otherwise qualified in full for any

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