HC Deb 13 July 1988 vol 137 c498

11.—(1) An election under section 94(4A) of this Act shall not cover disposals such as are specified in sub-paragraph (2) below.

(2) The disposals mentioned in sub-paragraph (1) above are disposals of, or of an interest in,—

  1. (a) plant or machinery,
  2. (b) an asset which the person making the disposal has at any time held for the purposes of or in connection with-
    1. (i) a trade consisting of the working of a source of mineral deposits, or
    2. (ii) where a trade involves (but does not consist of) such working, the part of the trade which involves such working, or
  3. (c) a licence under the Petroleum (Production) Act 1934 or the Petroleum (Production) Act (Northern Ireland) 1964; but a disposal does not fall within paragraph (a) or (b) above unless a capital allowance in respect of any expenditure attributable to the asset has been made to the person making the disposal or would have been made to him had he made a claim.

(3) Where the person making the disposal acquired the asset on a no gain/no loss disposal, the references in sub-paragraph (2) above to that person are references to the person making the disposal, the person who last acquired the asset otherwise than on a no gain/no loss disposal or any person who subsequently acquired the asset on such a disposal.

(4) In this paragraph—

  1. (a) "source of mineral disposits" shall be construed in accordance with Schedule 13 to the Finance Act 1986, and
  2. (b) references to a no gain/no loss disposal shall be construed in accordance with paragraph 1 above.